Order Code RL31303
Report for Congress
Received through the CRS Web
Appropriations for FY2003:
Labor, Health and Human Services,
and Education
Updated January 15, 2003
Paul M. Irwin
Specialist in Social Legislation
Domestic Social Policy Division
Congressional Research Service ˜ The Library of Congress

Appropriations are one part of a complex federal budget process that includes budget
resolutions, appropriations (regular, supplemental, and continuing) bills, rescissions, and
budget reconciliation bills. The process begins with the President’s budget request and is
bound by the rules of the House and Senate, the Congressional Budget and Impoundment
Control Act of 1974 (as amended), the Budget Enforcement Act of 1990, and current
program authorizations.
This report is a guide to one of the 13 regular appropriations bills that Congress considers
each year. It is designed to supplement the information provided by the House and Senate
Labor, Health and Human Services, and Education Appropriations Subcommittees. It
summarizes the current legislative status of the bill, its scope, major issues, funding levels,
and related legislative activity. The report lists the key CRS staff relevant to the issues
covered and related CRS products.
This report is updated as soon as possible after major legislative developments, especially
following legislative action in the committees and on the floor of the House and Senate.
NOTE: A Web version of this document with active links is
available to congressional staff at:
[http://www.crs.gov/products/appropriations/apppage.shtml].


Appropriations for FY2003: Labor, Health and
Human Services, and Education
Summary
This report tracks the legislative progress of the FY2003 appropriations for the
Departments of Labor, Health and Human Services, and Education, and Related
Agencies (L-HHS-ED). This Act provides discretionary funds for three federal
departments and related agencies. Final enactment of FY2003 appropriations is high
on the list of priorities of the 108th Congress. This report summarizes L-HHS-ED
discretionary funding issues, but not authorization or entitlement issues.
On February 4, 2002, the President submitted the FY2003 budget request to the
Congress. The L-HHS-ED request is $130.7 billion for discretionary programs; the
comparable FY2002 amount was $128.1 billion, enacted primarily through P.L. 107-
116
. An FY2003 L-HHS-ED bill was introduced as H.R. 246 on January 8, 2003,
without committee markup; a Senate bill, S. 2766, was reported on July 22, 2002.
A series of continuing resolutions has been providing interim FY2003 appropriations.
U.S. Department of Labor (DOL): DOL discretionary appropriations were
$12.0 billion in FY2002; $11.5 billion is requested for FY2003. A decrease of $0.5
billion is requested for job training programs under the Workforce Investment Act.
U.S. Department of Health and Human Services (DHHS): DHHS
discretionary appropriations were $56.9 billion in FY2002; $59.5 billion is requested
for FY2003. Increases are requested of $3.8 billion for the National Institutes of
Health, $130 million for Head Start, and $130 million for Safe and Stable Families.
An initial $184 million is requested for the Health Facilities Construction
Consolidation Initiative. A decrease of $368 million is proposed for Health
Professions, $390 million less for the Centers for Disease Control and Prevention,
$300 million less for the Low-Income Home Energy Assistance Program, and $366
million less for the Public Health and Social Service Emergency Fund. The request
would eliminate the $312 million Health Care and Other Facilities program.
U.S. Department of Education (ED): ED discretionary appropriations were
$49.9 billion in FY2002; $50.3 billion is proposed for FY2003. Increases are
requested of $1.0 billion each for Title I Part A Grants to Local Educational Agencies
and for Individuals with Disabilities Education Act (IDEA) Part B Grants to States.
After enactment of a $1.0 billion FY2002 supplemental, Pell Grants would be
decreased by $0.5 billion. A $100 million increase is requested for Reading First.
A Charter Schools Facilities Initiative would be funded at $100 million. Decreases
would include the elimination of the $163 million Rural Schools program, $749
million less for Fund for the Improvement of Education (FIE), and $142 million less
for the Fund for the Improvement of Postsecondary Education (FIPSE).
Related Agencies: Discretionary appropriations for related agencies were $9.2
billion in FY2002; $9.3 billion is requested for FY2003. A $351 million increase is
requested for Administrative Expenses at the Social Security Administration; no
advance funding would be given to the Corporation for Public Broadcasting (CPB).

Key Policy Staff
CRS
Area of Expertise
Name
Division
Telephone
Coordinator
Paul M. Irwin
DSP
7-7573
U.S. Department of Labor
Job training and employment services
Ann Lordeman
DSP
7-2323
Labor market information
Linda Levine
DSP
7-7756
Labor standards enforcement
William G. Whittaker
DSP
7-7759
Mine Safety and Health Administration
Edward B. Rappaport
DSP
7-7740
Occupational Safety and Health Administration
Edward B. Rappaport
DSP
7-7740
Older Americans Act, employment programs
Carol V. O’Shaughnessy
DSP
7-7329
Pension and Welfare Benefits
Paul J. Graney
DSP
7-2290
Trade Adjustment Assistance
Paul J. Graney
DSP
7-2290
Unemployment compensation
Celinda Franco
DSP
7-7360
Welfare-to-Work
Christine Devere
DSP
7-2587
Welfare-to-Work
Gene Falk
DSP
7-7344
Workforce Investment Act
Ann Lordeman
DSP
7-2323
U.S. Department of Health and Human Services
Abortion, legal issues
Karen J. Lewis
ALD
7-6190
Abortion, legal issues
Jon Shimabakuro
ALD
7-7990
Abortion procedures
Judith A. Johnson
DSP
7-7077
AIDS, Ryan White programs
Judith A. Johnson
DSP
7-7077
Bioterrorism, DHHS funding
C. Stephen Redhead
DSP
7-2261
Bioterrorism, DHHS funding
Pamela W. Smith
DSP
7-7048
Cancer research
Judith A. Johnson
DSP
7-7077
Centers for Disease Control and Prevention
Pamela W. Smith
DSP
7-7048
Child care and development
Melinda Gish
DSP
7-4618
Child welfare
Emilie Stoltzfus
DSP
7-2324
Cloning, Stem Cell Research
Judith A. Johnson
DSP
7-7077
Community Health Centers
Sharon Kearney
DSP
7-7367
Coleman
Family Planning, Title X
Sharon Kearney
DSP
7-7367
Coleman
Head Start
Melinda Gish
DSP
7-4618
Health professions education and training
Bernice
DSP
7-2260
Reyes-Akinbileje
Immigration and refugee policy
Ruth Wasem
DSP
7-7342
Immunization
Pamela W. Smith
DSP
7-7048
Low-Income Home Energy Assistance Program
Emilie Stoltzfus
DSP
7-2324
Maternal and Child Health Block Grant
Sharon Kearney
DSP
7-7367
Coleman
Medicaid
Elicia Herz
DSP
7-1377
Medicare
Jennifer O’Sullivan
DSP
7-7359
Needle exchange, AIDS
Judith A. Johnson
DSP
7-7077
NIH, health research policy
Pamela W. Smith
DSP
7-7048
NIH, health research policy
Judith A. Johnson
DSP
7-7077
Older Americans Act
Carol V. O’Shaughnessy
DSP
7-7329

CRS
Area of Expertise
Name
Division
Telephone
Social Services Block Grant
Melinda Gish
DSP
7-4618
State Children’s Health Insurance Program
Evelyne Baumrucker
DSP
7-8913
Stem Cell Research, Cloning
Judith A. Johnson
DSP
7-7077
Substance Abuse and Mental Health Services
C. Stephen Redhead
DSP
7-2261
Tobacco settlement
C. Stephen Redhead
DSP
7-2261
Welfare reform
Vee Burke
DSP
7-7304
Welfare reform
Gene Falk
DSP
7-7344
U.S. Department of Education
Adult education and literacy
Paul M. Irwin
DSP
7-7573
After-school programs
Gail McCallion
DSP
7-7758
Assessment in education
Wayne C. Riddle
DSP
7-7382
Bilingual education
Jeff Kuenzi
DSP
7-8645
Charter Schools
David Smole
DSP
7-0624
Education block grants
Paul M. Irwin
DSP
7-7573
Education of the Disadvantaged, Title I
Wayne C. Riddle
DSP
7-7382
Education technology
James B. Stedman
DSP
7-7356
English Language Acquisition
Jeff Kuenzi
DSP
7-8645
Impact Aid
Richard N. Apling
DSP
7-7352
Indian Education
Roger Walke
DSP
7-8641
Pell Grants
James B. Stedman
DSP
7-7356
Reading programs
Gail McCallion
DSP
7-7758
Rehabilitation Act
Sidath Panangala
DSP
7-0623
Safe and Drug-Free Schools and Communities
Edith Fairman Cooper
DSP
7-7019
School facilities
Susan Boren
DSP
7-6899
Special education, IDEA
Richard N. Apling
DSP
7-7352
Special education, IDEA, legal issues
Nancy Lee Jones
ALD
7-6976
Student aid
James B. Stedman
DSP
7-7356
Student loans
Adam Stoll
DSP
7-4375
Teacher recruitment, preparation, and training
James B. Stedman
DSP
7-7356
21st Century Community Learning Centers
Gail McCallion
DSP
7-7758
Vocational and Technical Education
Richard N. Apling
DSP
7-7352
Related Agencies
Corporation for National and Community Service
Ann Lordeman
DSP
7-2323
(VISTA, Senior Corps)
Corporation for Public Broadcasting
Glenn McLoughlin
RSI
7-7073
Library Services
Gail McCallion
DSP
7-7758
Museum Services
Susan Boren
DSP
7-6899
National Labor Relations Board
Gail McCallion
DSP
7-7758
National Labor Relations Board, legal issues
Jon Shimabukuro
ALD
7-7990
Railroad Retirement Board
Dawn Nuschler
DSP
7-6283
Social Security Administration
Geoffrey Kollmann
DSP
7-7316
Supplemental Security Income
Jennifer Lake
DSP
7-0620
Division abbreviations: ALD = American Law; DSP = Domestic Social Policy; and RSI = Resources,
Science, and Industry.

Contents
Most Recent Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Summary and Key Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Program Level and Current Year Appropriations . . . . . . . . . . . . . . . . . . . . . 3
Terrorism and Homeland Security Assistance . . . . . . . . . . . . . . . . . . . . . . . . 5
Earmarks for Specific Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Funding Changes Requested by the President . . . . . . . . . . . . . . . . . . . . . . . . 6
House Legislative Proposal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Senate Legislative Proposal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
302(a) and 302(b) Allocation Ceilings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Advance Appropriations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Major Funding Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Continuing Resolutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
World Wide Web Sites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
U.S. Department of Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Key Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
President’s Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
House Bill, as Introduced . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Senate Bill, as Reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
CRS Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
World Wide Web Sites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Detailed Appropriations Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
U.S. Department of Health and Human Services . . . . . . . . . . . . . . . . . . . . . . . . . 20
Key Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
President’s Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
House Bill, as Introduced . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Senate Bill, as Reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Bioterrorism Preparedness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Abortion: Annual Funding Restrictions . . . . . . . . . . . . . . . . . . . . . . . 23
Embryonic Stem Cell Research: Funding Restrictions . . . . . . . . . . . . 23
CRS Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
World Wide Web Sites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Detailed Appropriations Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
U.S. Department of Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Key Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
President’s Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
House Bill, as Introduced . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Senate Bill, as Reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Pell Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Student Aid Program Administration . . . . . . . . . . . . . . . . . . . . . . . . . 31
IDEA Part B Grants to States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Forward Funding and Advance Appropriations . . . . . . . . . . . . . . . . . . 32

CRS Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
World Wide Web Sites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Detailed Appropriations Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Related Agencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Key Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
President’s Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
House Bill, as Introduced . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Senate Bill, as Reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
CRS Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
World Wide Web Sites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Detailed Appropriations Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Related Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
FY2003 Continuing Resolution, P.L. 107-229 (H.J.Res. 111) . . . . . . . . . . 43
FY2002 Supplemental Appropriations, P.L. 107-206 (H.R. 4775) . . . . . . . 44
FY2003 Budget Resolution, H.Con.Res. 353/S.Con.Res. 100 . . . . . . . . . . 44
Department of Homeland Security, P.L. 107-296 (H.R. 5005) . . . . . . . . . . 45
Appropriations Action in the 107th Congress, First Session . . . . . . . . . . . . 46
Appendix A: Terminology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Appendix B: Scope of L-HHS-ED Appropriations . . . . . . . . . . . . . . . . . . . . . . 49
Appendix C: Terrorism Funding in L-HHS-ED Appropriations . . . . . . . . . . . . 52
Department of Homeland Security Programs . . . . . . . . . . . . . . . . . . . . . . . 52
Terrorism Funding, FY2003 Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Terrorism Funding, FY2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Terrorism Funding, FY2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
List of Tables
Table 1. Legislative Status of Labor, Health and Human Services, and
Education Appropriations, FY2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Table 2. Summary of L-HHS-ED Appropriations . . . . . . . . . . . . . . . . . . . . . . . . 4
Table 3. 302(b) Discretionary Allocations for L-HHS-ED Programs . . . . . . . . . 10
Table 4. L-HHS-ED Discretionary Funding Trends from FY1998 . . . . . . . . . . 12
Table 5. Department of Labor Discretionary Appropriations . . . . . . . . . . . . . . . 15
Table 6. Detailed Department of Labor Appropriations . . . . . . . . . . . . . . . . . . . 18
Table 7. U.S. Department of Health and Human Services
Discretionary Appropriations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Table 8. Detailed Department of Health and Human Services Appropriations . 26
Table 9. Department of Education Discretionary Appropriations . . . . . . . . . . . 28
Table 10. Detailed Department of Education Appropriations . . . . . . . . . . . . . . 35
Table 11. Related Agencies Discretionary Appropriations . . . . . . . . . . . . . . . . . 37
Table 12. Detailed Related Agencies Appropriations . . . . . . . . . . . . . . . . . . . . . 41
Table B.1. Scope of the L-HHS-ED Bill, FY2002 . . . . . . . . . . . . . . . . . . . . . . . 49

Appropriations for FY2003:
Labor, Health and Human Services,
and Education
Most Recent Developments
The FY2003 appropriations process began when the President submitted the
FY2003 budget request to Congress on February 4, 2002. On January 8, 2003, the
Labor, Health and Human Services, and Education Appropriations (L-HHS-ED)
Subcommittee Chairman Regula introduced a different version of the FY2003 bill,
H.R. 246; however, the House Appropriations Committee itself has not yet marked
up or reported any bill. The Senate Appropriations Committee marked up and
reported its FY2003 bill, S. 2766, on July 22, 2002, during the 107th Congress.
Completion of work on FY2003 appropriations, including L-HHS-ED funding, is
high on the list of priorities of the 108th Congress.

In related action, a series of six continuing resolutions, — P.L. 107-229
(H.J.Res. 111), as amended — is providing temporary FY2003 funding through
January 31, 2003. Earlier, the House passed an FY2003 congressional budget
resolution, H.Con.Res. 353, on March 20, 2002. The Senate Budget Committee
reported its resolution, S.Con.Res. 100, on March 22, but the full Senate did not act
on it. Additional FY2002 supplemental appropriations were enacted through P.L.
107-206 (H.R. 4775)
, which was signed into law August 2, 2002.

Status
Table 1 tracks the key legislative steps that are necessary to enact the FY2003
L-HHS-ED Appropriations Act.
Table 1. Legislative Status of Labor, Health and Human
Services, and Education Appropriations, FY2003
Subcommittee
Conference
markup
report approval
House
House
Senate
Senate
Conference
House
Senate
Report
passage
Report
passage
Report
House
Senate
Public law
S. 2766,
S.Rept.
— a
7/16/02
— — —


c
uc b
— —
107-216
uc
Note: uc = unanimous consent.

CRS-2
a The House L-HHS-ED Appropriations Subcommittee began hearings on FY2003 appropriations on
February 13, 2002. Without Committee markup, House Appropriations Committee Chairman Young
introduced the President’s FY2003 L-HHS-ED request as a bill, H.R. 5320, on September 4, 2002;
on January 8, 2003, Subcommittee Chairman Regula introduced a different version of the FY2003
L-HHS-ED bill, H.R. 246.
b The Senate L-HHS-ED Appropriations Subcommittee began hearings on FY2003 appropriations on
February 28, 2002. S. 2766 was reported by the Appropriations Committee on July 22, 2002, during
the 107th Congress; no L-HHS-ED bill has been considered yet by the Senate in the 108th Congress.
c A series of six FY2003 continuing resolutions, P.L. 107-229 (H.J.Res. 111), as amended, has been
providing temporary funding for existing L-HHS-ED programs since October 1, 2002.
FY2002 L-HHS-ED Appropriations were enacted in several stages. Initial
FY2002 appropriations were provided by a series of eight continuing resolutions —
P.L. 107-44, as amended. Regular FY2002 L-HHS-ED Appropriations were enacted
through P.L. 107-116 (H.R. 3061, H.Rept. 107-342, January 10, 2002). Additional
L-HHS-ED appropriations were enacted through the FY2002 anti-terrorism
supplemental P.L. 107-117 (H.R. 3338, H.Rept. 107-350, January 10, 2002), an
Act that also included the Department of Defense Appropriations for FY2002.
Further FY2002 supplemental appropriations for some L-HHS-ED programs were
enacted through P.L. 107-206 (H.R. 4775, H.Rept. 107-593, August 2, 2002). For
legislative details, see Related Legislation, page 43.
DATA NOTE: In this report, data on FY2002 appropriations and the FY2003
budget request are based on the January 9, 2003 unofficial staff table of the House
Appropriations Committee based on H.R. 246, as introduced, with the exception that
data from the Senate bill S. 2766 are based on S.Rept. 107-216 (July 22, 2002, during
the 107th Congress); other exceptions are noted where relevant. The FY2002
appropriations include amounts from P.L. 107-117, the Department of Defense and
Emergency Supplemental Appropriations for Recovery from and Response to
Terrorist Attacks on the United States Act, 2002 (enacted January 10, 2002), and
P.L. 107-206, the 2002 Supplemental Appropriations Act for Further Recovery From
and Response To Terrorist Attacks on the United States (enacted August 2, 2002).
In most cases data represent net funding for specific programs and activities and take
into account current and forward funding and advance appropriations; however, all
data are subject to additional budgetary scorekeeping. Except where noted, budget
data refer only to those programs within the purview of the L-HHS-ED
appropriations bill, and not to all programs within the jurisdiction of the relevant
departments and agencies.
Summary and Key Issues
This report describes the President’s proposal for FY2003 appropriations for
L-HHS-ED programs, as submitted to the Congress February 4, 2002, and the
congressional response to that proposal. It compares the President’s FY2003 request
to the FY2002 L-HHS-ED amounts. It tracks legislative action and congressional
issues related to the FY2003 L-HHS-ED appropriations bill, with particular attention
paid to discretionary programs. In addition, the report summarizes activities related
to the annual budget process, such as the congressional budget resolution, continuing
resolutions, and supplemental appropriations (see Related Legislation, page 43).
However, the report does not follow specific funding issues related to mandatory

CRS-3
L-HHS-ED programs — such as Medicare or Social Security — nor will it follow the
authorizing legislation necessary prior to funding some of the President’s initiatives.
For a glossary of budget terms, see Appendix A: Terminology, page 48. For a
discussion of the jurisdiction of the L-HHS-ED bill, see Appendix B: Scope of the
L-HHS-ED Bill
, page 49. For a separate description of terrorism funding, see
Appendix C: Terrorism Funding in the L-HHS-ED Bill, page 52.
The L-HHS-ED bill typically is one of the more controversial of the 13 regular
appropriations bills, not only because of the size of its funding total and the scope of
its programs, but also because of the continuing importance of various related issues,
such as restrictions on the use of federal funds for abortion and stem cell research.
This bill provides most of the discretionary funds for three federal departments and
several related agencies including the Social Security Administration (SSA). Of the
13 annual appropriations bills, the L-HHS-ED bill is the largest single source of
discretionary funds for domestic federal programs; the Defense bill is the largest
source of discretionary funds among all federal programs. For FY2002, the
L-HHS-ED bill accounted for $124.6 billion (17.9%) and the Defense bill accounted
for $320.5 billion (46.0%) of the estimated $696.5 billion total for all federal
discretionary budget authority, as reported in Budget of the United States Government
Fiscal Year 2003
, Table S-8. This section summarizes the larger funding changes
proposed for L-HHS-ED and related issues such as funds for anti-terrorism activities,
earmarks for specific projects, 302(b) allocations, and advance appropriations. Later
sections will provide additional details for each L-HHS-ED department.
Program Level and Current Year Appropriations
Table 2 summarizes the L-HHS-ED appropriations for FY2003, including both
discretionary and mandatory appropriations. The table shows various aggregate
measures of FY2002 enacted and FY2003 proposed L-HHS-ED appropriations,
including discretionary program level, current year, and advance appropriations, as
well as scorekeeping adjustments.
! Program level appropriations reflect the total discretionary
appropriations in a given bill, regardless of the year in which they
will be spent, and therefore include advance funding for future years.
Unless otherwise specified, appropriations levels in this report refer
to program level amounts.

! Current year appropriations represent discretionary
appropriations in a given bill for the current year, plus discretionary
appropriations for the current year that were enacted in prior years.
Current year discretionary appropriations are similar to the amount
counted for the 302(b) allocations ceilings (discussed later, page 10).
! Advance appropriations are funds that will not become available
until after the fiscal year for which the appropriations are enacted –
for example, funds included in the FY2003 Act that cannot be spent
until FY2004 at the earliest (discussed later, page 11).
! Scorekeeping adjustments are made to account for special funding
situations; the Congressional Budget Office (CBO) monitors these
adjustments.

CRS-4
Table 2. Summary of L-HHS-ED Appropriations
($ in billions)
FY2002
FY2003
FY2003
FY2003
FY2003
Type of budget authority
enacted a
request
House
Senate
conference
Discretionary appropriations
Program level: current bill for
$128.1
$130.7
$131.1
$136.8

any year
Current year: current year from
127.6
131.9
130.9
134.1

any bill
Advances for future years (from
19.3
18.9
19.3
21.5

the current bill)
Advances from prior years
18.8
19.2
19.2
19.2

(from previous bills)
Scorekeeping adjustments
0.0
0.6
-0.1
-0.4

Current year discretionary and mandatory funding
Discretionary
127.6
131.9
130.9
134.1

Mandatory
272.9
290.6
290.7
N/A

Total current year
400.5
422.5
421.6
N/A

Grand total of funding for L-HHS-ED bill, any year
Grand total any year
$411.8
$426.8
$427.3
$432.5

Source: Amounts are based on the January 9, 2003 unofficial staff table of the House Appropriations
Committee, except that Senate data are based on S.Rept. 107-216. Data are given only for programs
included in the L-HHS-ED appropriations bill.
Note: Both FY2002 and FY2003 mandatory amounts are estimates that are subject to adjustments
after the close of their respective fiscal years. “N/A” means not available.
a The FY2002 amounts are based on P.L. 107-116, P.L. 107-117, and P.L. 107-206.
Because appropriations may consist of mixtures of budget authority enacted in
various years, two summary measures are frequently used — program level
appropriations and current year appropriations. How are these measures related? For
an “operational definition,” program level funding equals (a) current year, plus (b)
advances for future years, minus (c) advances from prior years, and minus (d)
scorekeeping adjustments. Table 2 shows these amounts, along with current year
funding for mandatory programs and some grand totals for the L-HHS-ED bill.
Other FY2002 Discretionary Estimates. The two estimates for FY2002
L-HHS-ED discretionary appropriations that are shown in Table 2 — $128.1 billion
for program level and $127.6 billion for current year appropriations — are based on
the January 9, 2003 unofficial staff table of the House Appropriations Committee.
Several other estimates exist that may differ because of scorekeeping and other
definitional distinctions. The Office of Management and Budget (OMB) estimated
the FY2002 L-HHS-ED discretionary total to be $124.6 billion (Budget of the United
States Government Fiscal Year 2003
, Table S-8). The FY2002 L-HHS-ED
conference report table in H.Rept. 107-342 (page 228) shows $123.4 billion as the

CRS-5
current year discretionary total. The CBO keeps track of discretionary appropriations
for each Appropriations Subcommittee bill, and shows the total regular and
emergency amount for L-HHS-ED in “CBO’s Current Status of Discretionary
Appropriations,” available at [http://www.cbo.gov/]. According to the CBO, the
FY2002 L-HHS-ED discretionary total is $127.2 billion for the House and the Senate
(visited January 14, 2003). The CBO amounts include supplemental appropriations
and rescissions; however, CBO data may reflect legislation that has been reported or
passed only by the House or the Senate, and do not necessarily distinguish amounts
actually enacted.
Terrorism and Homeland Security Assistance
One of the key issues of L-HHS-ED appropriations in the past year has been the
funding for activities that relate to preparing for and responding to terrorism. Several
L-HHS-ED programs, particularly those dealing with bioterrorism, address these
needs directly. Some of these activities are to be transferred to the newly established
Department of Homeland Security (DHS) under the Homeland Security Act of 2002,
P.L. 107-296, enacted November 25, 2002. Other L-HHS-ED programs, such as
emergency grants for dislocated workers, are available to provide assistance in
response to many kinds of emergencies, including terrorism. Both types of programs
were in place prior to the terrorist attacks of September 11, 2001; the funding for
both types of programs has been augmented since that date. For funding details for
specific L-HHS-ED terrorism programs, see Appendix C: Terrorism Funding in the
L-HHS-ED Bill
, page 52.
Other Assistance Available for Emergencies. Some L-HHS-ED
programs are designed with enough flexibility that their funds might be used to
respond to emergencies. For example, the National Emergency Grants under the
DOL Dislocated Workers program, or the Low-Income Home Energy Assistance
Program (LIHEAP) or the Social Services Block Grant (SSBG) programs
administered by DHHS might be available for such situations. In addition, other
L-HHS-ED programs automatically address some types of emergency needs, as in the
case of the DOL Unemployment Compensation program, which provides financial
assistance for those suddenly finding themselves unemployed.
Earmarks for Specific Projects
The earmarking of funds for specific projects in appropriations bills has become
an issue of contention between the Administration and the Congress, and the issue
extends to L-HHS-ED projects. In some instances, L-HHS-ED appropriations are
earmarked for specific recipients or locations, either in the public law or in the
conference report. For the most part, the authorizing statute gives the general
purpose for such earmarks, such as “projects for the improvement of postsecondary
education,” but subsequently an appropriations act or conference report designates
specific recipients by means of earmarks. Such designations usually bypass standard
administrative procedures for an agency’s competitive distribution of awards. For
FY2002, P.L. 107-116 (conference report H.Rept. 107-342) included an estimated
1,600 earmarks for specific projects for which an estimated $1.0 billion was
appropriated. As shown in Table 2, the FY2002 L-HHS-ED appropriation was

CRS-6
$411.8 billion in aggregate, and represented $127.6 billion for current year
discretionary funds. These earmarks therefore represent 0.2% of the L-HHS-ED total
— and 0.8% of the discretionary total — in FY2002. The President proposed the
elimination of congressional earmarks in appropriations for each of the past 2 years,
but the Congress has continued this practice. The President again proposed the
abolition of earmarks in the FY2003 budget request.
Funding Changes Requested by the President
With regard to the President’s FY2003 budget, the issues in the early stages of
the appropriations process generally relate to proposed funding changes. The
summary below notes changes proposed for discretionary budget authority of at least
$100 million compared to the L-HHS-ED appropriations for FY2002. Viewing this
list by itself should be done with caution, since the relative impact of a $100 million
funding change to a $500 million program (a 20% increase or decrease) is greater
than a $100 million change to a $5 billion program (a 2% increase or decrease).
Later on in this report, the discussions for budgets of individual departments include
tables to compare the FY2003 request with the FY2002 funding for many of the
major programs in the L-HHS-ED bill. Overall, $130.7 billion in discretionary
appropriations at the program level is requested for L-HHS-ED, a 2.0% increase over
the FY2002 amount of $128.1 billion. At the time of the initial FY2003 request, the
comparable FY2002 amount was $127.3 billion; P.L. 107-206 provided FY2002
supplemental appropriations of nearly $1.0 billion.
! For DOL programs, a reduction of $0.5 billion is requested for job
training programs authorized by the Workforce Investment Act of
1998 (WIA). Overall, $11.5 billion in discretionary appropriations
is requested for DOL, a 4.2% decrease compared to the FY2002
amount of $12.0 billion.
! For DHHS programs, the largest discretionary funding change (in
absolute terms) is a requested increase of $3.8 billion for NIH. An
increase of $115 million is requested for Community Health
Centers; however, the $120 million Community Access Program
would be eliminated. Other increases include $130 million
additional for Head Start and $130 million more for Safe and Stable
Families. An initial $184 million is requested for the Health
Facilities Construction Consolidation proposal. Requested decreases
include a $368 million reduction for Health Professions; $390
million less for the Centers for Disease Control and Prevention
(CDC); $300 million less for the Low-Income Home Energy
Assistance Program (LIHEAP); and a $366 million reduction for the
Public Health and Social Services Emergency Fund (PHSSEF). The
request would eliminate the $312 million Health Care and Other
Facilities program. Overall, $59.5 billion in discretionary
appropriations is requested for DHHS, a 4.6% increase over the
FY2002 amount of $56.9 billion.
! For U.S. Department of Education (ED) programs, the two largest
discretionary changes (in absolute terms) would be a $1.0 billion

CRS-7
increase each for Title I Part A Grants to Local Educational
Agencies (LEAs) for the Education of the Disadvantaged and the
Individuals with Disabilities Education Act (IDEA) Part B Grants to
States. After enactment of a $1.0 billion FY2002 supplemental, Pell
Grants would be decreased by $0.5 billion. The maximum award
under Pell Grants would be $4,000, the same as for FY2002. Other
major increases include $100 million more for the Reading First
programs, and $100 million for a new Charter Schools Facilities
Initiative. Decreases would include elimination of the $163 million
Rural Schools program; a $749 million decrease for Fund for the
Improvement of Education (FIE); and $142 million less for the Fund
for the Improvement of Postsecondary Education (FIPSE).
Discretionary funding of $932 million is requested to support the
creation of a new unified discretionary account for the
administration of federal student aid programs. This proposal would
be offset in part by a $797 million reduction obtained through a
reclassification of certain mandatory funds for student aid
administrative activities. Overall, $50.3 billion in discretionary
appropriations is requested for ED, a 0.8% increase over the FY2002
amount of $49.9 billion.
! For the related agencies, the budget proposes an increase of $351
million for the Limitation on Administrative Expenses at the Social
Security Administration (SSA). The budget would eliminate the 2-
year advance appropriations for the Corporation for Public
Broadcasting (CPB); $380 million was provided in FY2002.
Overall, $9.3 billion in discretionary appropriations is requested for
related agencies, a 1.1% increase over the FY2002 amount of $9.2
billion.
House Legislative Proposal
On January 8, 2003, Representative Ralph Regula, Chairman of the House
Subcommittee on L-HHS-ED Appropriations, introduced H.R. 246, a bill to provide
FY2003 appropriations for L-HHS-ED programs. H.R. 246 has not been agreed to
by either the Committee or Subcommittee, and has not been passed by the House.
House Highlights, as Introduced. Overall, the FY2003 House bill, as
introduced, January 8, 2003, would provide program level discretionary
appropriations of $131.1 billion for L-HHS-ED programs. The comparable amount
requested by the President is $130.7 billion; the FY2002 amount was $128.1 billion.
The bill differs from the President’s request in a number of details.
! For DOL programs, the House bill proposes that WIA programs
would be funded at $5.1 billion, $102 million more than the FY2003
request. Overall, the House bill would provide $11.7 billion for
discretionary appropriations for DOL, $0.2 billion more than
requested but $0.3 billion less than the FY2002 amount.

CRS-8
! For DHHS programs, the House bill would fund Health Professions
at a level $375 million more than requested; the CDC would receive
$315 million more; and LIHEAP would receive $300 million more
than the request. However, the $300 million LIHEAP Emergency
Allocation would be eliminated under the House bill. The PHSSEF
would receive $212 million more than requested. The Community
Access program would be maintained at $120 million; the request
was for termination of funding. The NIH would receive $0.7 billion
less than requested; discretionary funding for Promoting Safe and
Stable Families would receive $130 million less than requested. The
House bill does not accept the $184 million requested for the Health
Facilities Construction Consolidation proposal. Overall, the House
bill would provide $59.5 billion for discretionary appropriations for
DHHS, the same as requested but $2.6 billion more than the FY2002
amount.
! For ED programs, the House bill would provide $500 million less
than requested for Title I Part A Grants, and $500 million less for
IDEA Part B Grants to States as well. Teacher Quality would
receive $100 million more than the request; the FIE would receive
$227 million more; Pell Grants would receive $337 million more.
Rural Education would be level funded at $163 million; no funds
were requested. The House bill would reject the President’s request
to fund mandatory student loan administrative activities on a
discretionary basis. Overall, the House bill would provide $50.3
billion for discretionary appropriations for ED, the same as
requested but $0.4 billion more than the FY2002 amount.
! For related agencies, the House bill would provide appropriations at
approximately the level requested by the President with the
exception that the CPB would receive a 2-year advance
appropriation of $380 million for FY2005; the CPB would not
receive FY2005 funding under the request. Overall, the House bill
would provide $9.3 billion for discretionary appropriations for
related agencies, the same as requested but $0.1 million more than
the FY2002 amount.
During the 107th Congress, on September 4, 2002, Representative C. W. Bill
Young, Chairman of the House Appropriations Committee, introduced H.R. 5320,
a bill to provide FY2003 appropriations for L-HHS-ED programs in the exact same
amounts proposed by the President in the FY2003 budget request. The House
Appropriations Committee neither marked up nor voted on H.R. 5320.
Senate Legislative Proposal
During the 107th Congress, the L-HHS-ED Subcommittee of the Senate
Appropriation Committee held a markup session on its version of the FY2003
L-HHS-ED bill on July 16, 2002, and reported favorably to the full Committee. The
Senate Appropriations Committee reported the bill, S. 2766, S.Rept. 107-216, on

CRS-9
July 22, 2002. An FY2003 L-HHS-ED bill has not yet received legislative action in
the Senate during the 108th Congress.
Senate Committee Highlights. Overall, the FY2003 Senate bill, as
reported by the Senate Appropriations Committee July 22, 2002, would provide
program level discretionary appropriations of $136.8 billion for L-HHS-ED
programs. The comparable amount requested by the President is $130.7 billion; the
FY2002 amount was $128.1 billion.
! For DOL programs, the Senate bill would provide $0.7 billion more
than the FY2003 request for WIA programs. Overall, the Senate bill
would provide $12.4 billion in discretionary appropriations for DOL,
$0.9 billion more than requested and $0.4 billion more than the
FY2002 amount.
! For DHHS programs, the Senate bill would provide NIH with an
increase of $3.7 billion, the same as requested in the FY2003 budget.
The bill would provide $243 million more than the request for
Health Professions; $161 million more for Ryan White AIDS
Programs; $620 million more for the CDC; $300 million more for
LIHEAP; and $202 million more for Head Start. The Community
Access Program would be funded at $120 million, the same as in
FY2002; no funds were requested. Overall, the Senate bill would
provide $61.6 billion in discretionary appropriations for DHHS, $2.1
billion more than requested and $4.7 billion more than the FY2002
amount.
! For ED programs, the Senate bill would provide $500 million more
than the FY2003 request for Title I Part A Grants. A Struggling
Schools Improvement Grants Initiative would receive first year
funding of $100 million; no funds are requested. The Senate bill
would provide $250 million more than the FY2003 request for
Teacher Quality; $792 million more for FIE programs; and $317
million more for Pell Grants. The maximum award under Pell
Grants would be increased to $4,100, an amount that is $100 more
than requested or provided in FY2002. The Senate bill would not
support the President’s proposal to unify the mandatory part of
federal student aid program administration, and would provide no
funds for Charter School Facilities. Rural Education would be
funded at $175 million; no funds are requested. Overall, the Senate
bill would provide $53.2 billion in discretionary appropriations for
ED, $2.9 billion more than requested and $3.3 billion more than the
FY2002 amount.
! For related agencies, the Senate bill would provide appropriations at
approximately the level requested by the President for FY2003,
except that a 2-year advance appropriation of $380 million would be
provided for the CPB. Overall, the Senate bill would provide $9.7
billion in discretionary appropriations, $0.4 billion more than the
request and $0.5 billion more than the FY2002 amount.

CRS-10
302(a) and 302(b) Allocation Ceilings
The maximum budget authority for annual L-HHS-ED appropriations is usually
determined through a two-stage congressional budget process. In the first stage, the
Congress agrees to overall spending totals in the annual concurrent resolution on the
budget. Subsequently, these amounts are allocated among committees, usually
through the statement of managers for the conference report on the budget resolution.
These amounts are known as the 302(a) allocations. They include the discretionary
totals available to the House and Senate Appropriations Committees for enactment
in annual appropriations. The House and the Senate considered budget resolutions
for FY2003, H.Con.Res. 353 and S.Con.Res. 100, but they have not yet reached an
agreement. For legislative details, see Related Legislation, page 43; for procedural
information, see CRS Report 98-721, Introduction to the Federal Budget Process;
and for a discussion of possible alternative actions if the Congress fails to agree to
a budget resolution, see CRS Report RL31443, The “Deeming Resolution”: A
Budget Enforcement Tool
.
In the second stage of the process, the appropriations committees allocate the
302(a) discretionary funds among their subcommittees for each of the 13 annual
appropriations bills. These amounts are known as the 302(b) allocations. These
allocations must add up to no more than the 302(a) discretionary allocation, and form
the basis for enforcing budget discipline, since any bill reported with a total above
the ceiling is subject to a point of order. The 302(b) allocations can and do get
adjusted during the year as the various appropriations bills progress toward final
enactment. Despite the lack of a House-Senate agreement on the FY2003 budget
resolution, the initial 302(b) allocations for the FY2003 L-HHS-ED appropriations
bills were announced by the appropriations committees during the 107th Congress,
as shown in Table 3. Comparable amounts for FY2002 and the President’s FY2003
budget are also shown. Subject to scorekeeping considerations, 302(b) allocations
are similar to current year discretionary appropriations. Both the 302(a) and the
302(b) allocations regularly become contested issues in their own right.
Table 3. 302(b) Discretionary Allocations
for L-HHS-ED Programs
(budget authority in billions of dollars)
FY2002
FY2003
FY2003
FY2003
FY2003
enacted
request
House
Senate
conference
comparable
comparable
allocation
allocation
comparable
$126.1
$131.4
$129.9
$134.1

Source: The House FY2003 allocation is based on the Appropriations Committee report, H.Rept.
107-567 (July 11, 2002); the Senate FY2003 allocation is based on the Senate Appropriations
Committee press release of August 5, 2002. The comparable FY2002 enacted appropriations and the
FY2003 budget request data are based on the June 24, 2002 unofficial staff table of the House
Appropriations Committee. The FY2002 amount is based on P.L. 107-116 and P.L. 107-117, but does
not include funds enacted by P.L. 107-206, which provided nearly $1.0 billion more for L-HHS-ED
activities.

CRS-11
Note: Under current scorekeeping provisions, advance appropriations that were enacted as part of the
FY2002 appropriations are counted in FY2003 or later, and any advance appropriations enacted as
part of the FY2003 appropriations would be counted in FY2004 or later.
Advance Appropriations
Advance appropriations occur when funding enacted in one fiscal year cannot
be spent until a subsequent fiscal year (see CRS Report RS20441, Advance
Appropriations, Forward Funding, and Advance Funding
). For example, P.L. 107-
116, which enacted FY2002 L-HHS-ED appropriations, provided $380 million for
the Corporation for Public Broadcasting (CPB) for use in FY2004. The enactment
of advance appropriations can be undertaken to meet several objectives. These
include the provision of long-term budget information to agencies and other
recipients, such as state and local educational systems, to enable better planning of
future program activities and personnel levels. The more contentious aspect of
advance appropriations, however, is that they avoid the 302(a) and 302(b) allocation
ceilings for the current year. However, such funding must be counted in the year in
which it first becomes available, thereby using up ahead of time part of what will be
counted against the allocation ceiling in future years. For an example of the impact
of advance appropriations on program administration, see the discussion below in the
section on ED (page 32).
The FY1999 and FY2000 annual L-HHS-ED appropriations bills provided
significant increases in advance appropriations for discretionary programs. From
FY2000 to FY2002, these amounts stabilized at approximately $19 billion, or about
15% of L-HHS-ED discretionary appropriations. For FY2002, the President’s budget
proposed the elimination of advance appropriations for federal discretionary
programs, including those for L-HHS-ED programs. The Congress rejected that
proposal, and continued such funding instead. For FY2003, the President’s request
would slightly reduce advance appropriations for L-HHS-ED programs; H.R. 246
would maintain the FY2002 level; and the Senate Appropriations Committee bill, as
reported, would increase advance appropriations to $21.5 billion. In general, the
House-passed version of the FY2003 budget resolution would maintain advance
appropriations only for programs currently receiving such appropriations; see §301
of H.Con.Res. 353. Annual amounts from FY1998 to the present are as follows:
! FY1998, $4.0 billion;
! FY1999, $8.9 billion;
! FY2000, $19.0 billion;
! FY2001, $18.8 billion;
! FY2002, $19.3 billion, as enacted by P.L. 107-116;
! FY2003 request, $18.9 billion;
! FY2003, as introduced in H.R. 246, $19.3 billion; and
! FY2003 Senate, as reported in S. 2766, $21.5 billion.
Major Funding Trends
The L-HHS-ED appropriations bills combine mandatory and discretionary
funds; however, the Appropriations Committees fully control only the discretionary
funds. Mandatory funding levels for programs included in the annual appropriations

CRS-12
bills are modified through changes in the authorizing legislation. These changes
typically are accomplished through the authorizing committees and combined into
large, omnibus reconciliation bills. Table 4 shows the trend in discretionary budget
authority under the L-HHS-ED appropriations for FY1998 through FY2002.
Total L-HHS-ED discretionary funds increased by 53.6% during this 5-year
period. The 5-year increase is reduced to an estimated 42.1% after adjustment for
inflation by use of the Gross Domestic Product (GDP) deflator. When compared to
all federal discretionary budget authority, the L-HHS-ED portion increased from
15.3% share of the federal total in FY1998 to an estimated 17.4% in FY2002. When
compared to all federal budget authority, both discretionary and nondiscretionary
(mandatory), the L-HHS-ED portion of the federal total increased during this period
from 4.8% in FY1998 to an estimated 6.0% in FY2002.
Table 4. L-HHS-ED Discretionary Funding Trends from FY1998
(budget authority in billions of dollars)
FY2002
Type of funds
FY1998
FY1999
FY2000
FY2001
estimate a
L-HHS-ED discretionary
$81.1
$89.5
$87.1
$110.5
$124.6
L-HHS-ED discretionary in
$87.7
$95.5
$91.1
$112.9
$124.6
estimated FY2002 dollars
L-HHS-ED % of all federal
discretionary funds b
15.3%
15.4%
14.9%
16.4%
17.4%
L-HHS-ED % of total
4.8%
5.0%
4.8%
5.6%
6.0%
federal budget authority
Total federal discretionary
$529.6
$581.9
$584.4
$671.9
$717.8
Total federal budget $1,692.3 $1,776.7 $1,825.0 $1,959.7
$2,085.0
authority
GDP deflator
1.0339
1.0474
1.0690
1.0937
1.1177
Source: Federal totals and the GDP deflator are based on the Budget of the United States Government
Historical Tables Fiscal Year 2003
, Tables 5.2, 5.4, and 10.1. The L-HHS-ED discretionary budget
authority amounts are based on the Budget of the United States Government from various years, and
therefore may not be completely comparable from year to year.
a Estimates are based on FY2002 appropriations enacted as of the submission of the FY2003 budget
request in February 2002; they do not include any supplemental appropriations and rescissions for
L-HHS-ED and other bills that were enacted later in FY2002.
b Discretionary funds include both defense and non-defense activities.
Continuing Resolutions
Since October 1, 2002, L-HHS-ED agencies have been operating under a series
of continuing resolutions that, with certain exceptions, allows FY2003 program
funding during the length of the resolution on a daily basis at a rate not to exceed the

CRS-13
“current rate” under regular FY2002 funding levels and program authority.1 The
resolutions prohibit the initiation of new programs and prevent funding increases in
existing programs, even to respond to increases in the need for services or the
numbers of eligible beneficiaries. Programs with high spend–out rates in the early
part of the fiscal year are restricted from spending at a rate that would impinge on the
final FY2003 funding decisions.
What are the implications of continuing resolutions for L-HHS-ED programs?
Some agencies may experience complications in program operations and grants
administration. For programs with high spend-out rates early in the fiscal year, for
example, the Impact Aid program, lower rates may be used until final funding is
enacted. Discretionary grants programs may have the entire grants process put on
hold until regular funding is available. Programs for which large increases were
anticipated in FY2003, such as those at NIH, may delay grants for all new projects
while a continuing resolution is in effect. For the large increases proposed for DHHS
bioterrorism research and development programs to support homeland security,
funding is not available to support such efforts under a continuing resolution. Most
education formula grants and some job training funds will not be affected until July
1, 2003, or later, when the grants are first scheduled for availability to the states;
however, local budgets and staffing decisions may be delayed until each grant can be
specified. Earmarks for specific projects will not be funded during most continuing
resolutions — as noted above, the FY2002 L-HHS-ED appropriations provided
approximately $1.0 billion for 1,600 local recipients. For legislative details on
FY2003 continuing resolutions, see Related Legislation, p. 43.
World Wide Web Sites
General information on budget and appropriations may be found at these web
sites. Specific L-HHS-ED agency sites are listed in relevant sections of this report.
House Committees
[http://www.house.gov/appropriations]
[http://www.house.gov/budget/]
Senate Committees
[http://www.senate.gov/~appropriations/]
[http://www.senate.gov/~budget/]
1 The term “current rate” as used in a continuing resolution refers to the amount of money
available for an activity during the previous fiscal year. This amount usually means the
appropriations for the previous year with adjustments for any supplemental appropriations,
rescissions, unobligated balances, and sometimes for advance appropriations provisions as
well. One-time FY2002 funding for specific activities, including earmarks for specific
projects, are subject to exclusion when calculating the current rate for FY2003, under
October 4, 2002 OMB instructions to federal agencies. The OMB exclusions were added
as §134 of P.L. 107-229 by P.L. 107-240, the 3rd Continuing Resolution. In short, the
current rate will not necessarily correspond to the FY2002 amounts stated in this report.

CRS-14
Congressional Budget Office (CBO)
[http://www.cbo.gov]
Congressional Research Service (CRS)
[http://www.crs.gov/products/appropriations/apppage.shtml]
General Accounting Office (GAO)
[http://www.gao.gov/]
Government Printing Office (GPO)
[http://w3.access.gpo.gov/usbudget/index.html]
Office of Management & Budget (OMB)
[http://www.whitehouse.gov/OMB/budget/index.html]
[http://www.whitehouse.gov/OMB/legislative/sap/index.html]

CRS-15
U.S. Department of Labor
The FY2003 budget proposal for discretionary appropriations at the U.S.
Department of Labor (DOL) is $11.5 billion, $0.5 billion (4.2%) less than the
FY2002 appropriations of $12.0 billion, as shown in Table 5. As introduced,
H.R. 246 would provide $11.7 billion; as reported, the Senate bill, S. 2766, would
provide $12.4 billion in discretionary appropriations.
Table 5. Department of Labor Discretionary Appropriations
($ in billions) a
FY2002
FY2003
FY2003
FY2003
FY2003
Funding
enacted b
request
House
Senate
conference
Appropriations
$12.0
$11.5
$11.7
$12.4

Source: Amounts are based on the January 9, 2003 unofficial staff table of the House Appropriations
Committee; Senate data are based on S.Rept. 107-216.
a The amounts shown represent only discretionary programs funded by the L-HHS-ED appropriations
bill; appropriations for mandatory programs are excluded.
b The FY2002 amounts are based on P.L. 107-116, P.L. 107-117, and P.L. 107-206.
Mandatory DOL programs included in the FY2002 L-HHS-ED bill were funded
at $2.2 billion, and consist of the Black Lung Disability Trust Fund ($1.0 billion),
Federal Unemployment Benefits and Allowances ($0.5 billion), Advances to the
Unemployment Insurance and Other Trust Funds ($0.4 billion), Energy Employees
Occupational Illness Fund ($0.1 billion), and Employment Standards Administration
Special Benefits programs ($0.1 billion).
Key Issues
President’s Request. The President’s FY2003 budget request for DOL
focuses on job training programs. Reductions are proposed for some of these
programs, including some that are receiving supplemental funds that were provided
in response to the terrorist attacks of September 11, 2001. Discretionary changes of
at least $100 million requested for DOL programs under the President’s FY2003
budget include the following:
! A reduction of $445 million is requested for programs authorized by
the Workforce Investment Act of 1998 (WIA), which was funded at
$5.5 billion in FY2002. Regarding specific WIA programs, $127
million less is requested for Youth Training, funded at $1.1 billion
in FY2002; $180 million less is proposed for Youth Opportunity
Grants, funded at $225 million in FY2002; and $233 million less is
requested for Other Federally Administered WIA programs, funded
at $347 million in FY2002. Other Federally Administered programs
include Migrant and Seasonal Farmworkers ($80 million in FY2002)
— a program proposed for elimination in the request — as well as

CRS-16
Pilot and Demonstration programs ($130 million in FY2002), for
which $35 million is requested.
! Emergency Expenses for Workers Compensation Programs, which
were provided $175 million under the P.L. 107-117 FY2002
Supplemental, would receive no funding under the FY2003 request.
! Unemployment Compensation would funded at $2.7 billion, $251
million more than the FY2002 amount of $2.4 billion.
House Bill, as Introduced. As introduced, the House bill is similar to the
President’s request with the exception that WIA programs would be funded at $5.1
billion, $102 million more than the FY2003 request but $343 million less than the
FY2002 amount. Dislocated Workers State Grants would receive $1.2 billion, $102
million more than in FY2002, and funding for Migrant and Seasonal Farmworkers
would be set at $75 million, $5 million less than the FY2002 amount.
Senate Bill, as Reported. For DOL programs, the FY2003 Senate bill
differs in several respects from the President’s budget request.
! WIA programs would be funded at $5.6 billion, $597 million more
than the FY2003 request and $152 million more than the FY2002
amount. Youth Training would receive $1.1 billion, $127 million
more than requested and the same as the FY2002 amount.
Dislocated Worker Assistance would receive $1.5 billion, $106
million more than requested and $178 million more than in FY2002
(but see note b for Table 6 regarding adjustments for FY2001
rescissions). Youth Opportunity Grants would be funded at $225
million, $180 million more than requested and the same as the
FY2002 amount. Two other WIA programs, for which no funds
were requested, would be continued at their FY2002 funding levels
— Migrant and Seasonal Farmworkers ($80 million) and the
Responsible Reintegration of Youthful Offenders ($55 million).
CRS Products
CRS Report RL31501, Child Labor in America: History, Policy, and Legislative
Issues, by William G. Whittaker.
CRS Report 97-724, Ergonomics in the Workplace: Is it Time for an OSHA
Standard?, by Edward Rappaport.
CRS Report 97-536, Job Training Under the Workforce Investment Act: An
Overview, by Ann Lordeman.
CRS Report RL31336, Older Americans Act: Programs and Funding, by Carol
O’Shaughnessy.
CRS Report RL31277, Temporary Programs to Extend Unemployment
Compensation, by Jennifer E. Lake.
CRS Report RS21078, Trade Adjustment Assistance for Workers: Legislation in the
107th Congress, by Paul J. Graney.
CRS Report 95-742, Unemployment Benefits: Legislative Issues in the 107th
Congress, by Celinda M. Franco.
CRS Report RS20244, The Workforce Investment Act: Training Programs Under
Title I at a Glance, by Ann Lordeman.

CRS-17
World Wide Web Sites
U.S. Department of Labor
[http://www.dol.gov]
[http://www.dol.gov/_sec/budget2003/overview-toc.htm]
[http://www.dol.gov/_sec/budget2003/tables.htm#budgetauth]
[http://www.dol.gov/_sec/media/congress/2132002ec.htm]
Detailed Appropriations Table
Table 6 shows the appropriations details for offices and major programs of
DOL.

CRS-18
Table 6. Detailed Department of Labor Appropriations
($ in millions)
FY2002
FY2003
FY2003
FY2003
FY2003
Office or major program
enacted a
request
House
Senate
conference
Employment and Training Administration (ETA)
Training and Employment
Services (TES), Workforce
950
900
900
950

Investment Act (WIA) Adult
Training Grants to States
WIA Youth Training
1,128
1,001
1,045
1,128

WIA Dislocated Worker
Assistance b
1,371
1,443
1,485
1,549

–Dislocated Worker Assistance,
1,129
1,106
1,208
1,239

State Grants (non-add)
–Dislocated Worker Assistance,
242
337
277
310

Secretary’s Reserve (non-add)
WIA Job Corps
1,459
1,532
1,519
1,519

WIA Youth Opportunity Grants
225
45
0
225

(YOG)
WIA other federally administered
347
114
188
261

programs
WIA subtotal in TES
5,480
5,035
5,137
5,632

TES, Other
5
1
1
1

Community Service Employment
445
440
440
450

for Older Americans
Worker Compensation Programs
175
0
0
0

Emergency Expenses
Federal Unemployment Benefits
and Allowances, Trade
416
871
972
416

Adjustment and NAFTA
Activities (mandatory)
State Unemployment Insurance
and Employment Service
2,417
2,668
2,651
2,651

Operations (SUI/ESO)
Unemployment Compensation
SUI/ESO Employment Service
847
826
847
847

SUI/ESO One-Stop Career
120
113
100
113

Centers
SUI/ESO Work Incentives Grants
20
20
20
20

SUI/ESO subtotal
3,404
3,627
3,618
3,631

Advances to Unemployment Trust
464
463
463
463

Fund and other funds (mandatory)
ETA Program Administration
161
171
172
178

ETA subtotal
10,550
10,608
10,803
10,771

Pension and Welfare Benefits
111
117
117
114

Administration
Pension Benefit Guaranty
Corporation (PBGC)
12
13
13
13

Administration
PBGC program level (non-add)
190
193
193
193


CRS-19
FY2002
FY2003
FY2003
FY2003
FY2003
Office or major program
enacted a
request
House
Senate
conference
Employment Standards Administration (ESA)
ESA Salaries and Expenses
370
294
381
384

ESA Special Benefits
121
163
163
163

(mandatory)
ESA Energy Employees
Occupational Illness Fund
131
105
105
105

(mandatory)
ESA Black Lung Disability Trust
1,036
1,035
1,035
1,035

Fund (mandatory)
ESA subtotal
1,658
1,597
1,684
1,687

Occupational Safety and Health
443
437
444
470

Administration (OSHA)
Mine Safety and Health
253
254
254
262

Administration (MSHA)
Bureau of Labor Statistics
474
498
498
498

Office of Disability Employment
38
47
43
47

Policy
Departmental Management,
148
55
55
148

International Labor Affairs
Departmental Management,
Veterans Employment and
213
210
210
218

Training
Departmental Management, Other
293
326
302
308

Departmental Management
654
591
567
674

subtotal
TOTALS, DEPARTMENT OF LABOR
Total appropriations c
14,192
14,163
14,425
14,537

Current year: FY2003
11,729
11,699
11,962
12,074

Advance year: FY2003
2,463
2,463
2,463
2,463

Source: Amounts are based on the January 9, 2003 unofficial staff table of the House Appropriations
Committee; Senate data are based on S.Rept. 107-216.
a The FY2002 amounts are based on P.L. 107-116, P.L. 107-117, and P.L. 107-206.
b The actual FY2002 appropriation for Dislocated Worker Assistance was $1,549 million and not
$1,371 million; the difference is a rescission from FY2001 appropriations that was enacted through
P.L. 107-20, but implemented in FY2002; the rescission was $177.5 million, which consisted of
$110.0 million for State Grants and $67.5 million for the Secretary’s Reserve.
c Appropriations totals include discretionary and mandatory funds, and may be subject to additional
scorekeeping and other adjustments.

CRS-20
U.S. Department of Health and Human Services
The FY2003 budget proposal for discretionary appropriations at the U.S.
Department of Health and Human Services (DHHS) is $59.5 billion, $2.6 billion
(4.6%) more than the FY2002 appropriations of $56.9 billion, as shown in Table 7.
As introduced, H.R. 246 would provide $59.5 billion; as reported, the Senate bill,
S. 2766, would provide $61.6 billion in discretionary appropriations.
Table 7. U.S. Department of Health and Human Services
Discretionary Appropriations
($ in billions) a
FY2002
FY2003
FY2003
FY2003
FY2003
Funding
enacted b
request
House
Senate
conference
Appropriations
$56.9
$59.5
$59.5
$61.6

Source: Amounts are based on the January 9, 2003 unofficial staff table of the House Appropriations
Committee; Senate data are based on S.Rept. 107-216.
a The amounts shown represent discretionary programs funded by the L-HHS-ED appropriations bill;
appropriations for mandatory programs are excluded, as are DHHS discretionary amounts that are
funded in other appropriations bills.
b The FY2002 amounts are based on P.L. 107-116, P.L. 107-117, and P.L. 107-206.
Mandatory DHHS programs included in the FY2002 L-HHS-ED bill were
funded at $248.7 billion, and consist primarily of Grants to States for Medicaid
($153.7 billion), Payments to Medicare Trust Funds ($82.0 billion, virtually all for
Part B Supplementary Medical Insurance), Foster Care and Adoption ($6.6 billion),
and Social Services Block Grant ($1.7 billion).
Key Issues
President’s Request. The President’s FY2003 budget request for DHHS
would focus increased support primarily for medical research, with smaller increases
for selected health care and early childhood development programs. At the same
time, it would reduce funding for programs for health professions, health care
facilities, disease control and prevention, and home energy assistance for low-income
people. Discretionary spending changes of at least $100 million are requested for the
following programs.
! An increase of $3.8 billion is requested for the National Institutes of
Health (NIH), which was funded at $23.4 billion in FY2002, to
support activities that maintain and improve health through medical
science. This is the largest increase in discretionary funds (in terms
of absolute dollars) in the entire FY2003 L-HHS-ED budget request.
The FY2003 request would complete a 5-year effort by the Congress
to double the size of NIH funding, from $13.6 billion in FY1998 to
$27.2 billion in FY2003 (see CRS Issue Brief IB10100, Federal
Research and Development Funding: Fiscal Year 2003
).

CRS-21
! An additional $115 million is proposed for Community Health
Centers, which was funded at $1.3 billion in FY2002; however, the
$120 million Community Access Program, which provides the
uninsured with safety-net access to health care, would be eliminated.
! A decrease of $368 million is requested for the Health Professions
program, funded at $663 million in FY2002.
! The Health Care and Other Facilities program, funded at $312
million in FY2002, would be eliminated; funds for this program are
earmarked for construction and renovation projects for designated
recipients.
! A decrease of $390 million is requested for the Centers for Disease
Control and Prevention (CDC); $4.4 billion was provided for
FY2002 for the prevention and control of diseases, injuries, and
disabilities. The decrease is due primarily to a one-time buildup in
FY2002 of vaccines and other pharmaceuticals to combat
bioterrorism threats.
! A decrease of $300 million is proposed for the Low-Income Home
Energy Assistance Program (LIHEAP); $1.7 billion was
appropriated for FY2002. The LIHEAP Emergency Allocation of
$300 million would be level funded.
! An additional $131 million is requested for Head Start, funded at
$6.5 billion in FY2002.
! An additional $130 million is requested for the discretionary portion
of the Promoting Safe and Stable Families program; $70 million in
discretionary funds was provided for FY2002.
! The Public Health and Social Services Emergency Fund (PHSSEF)
would be reduced by $366 million; this account was funded at $2.7
billion in FY2002, primarily for bioterrorism and emergency
response programs.
! An initial $184 million is requested for the Health Facilities
Construction Consolidation proposal, which would eventually
combine funding from several DHHS accounts into a single fund for
health facilities construction.
House Bill, as Introduced. For DHHS programs, the FY2003 House bill
differs in several respects from the President’s budget request.
! Health Professions would receive $375 million more than requested,
and $7 million more than the FY2002 amount.
! The Community Access program would be maintained at $120
million; the request was for termination of funding.
! The CDC would receive $315 million more than the requested
amount, but $75 million less than in FY2002.
! The NIH would receive $0.7 billion less than requested, but $3.1
billion more than in FY2002.
! LIHEAP would receive $300 million more than the request but the
same amount as in FY2002. However, the $300 million LIHEAP
Emergency Allocation would be eliminated; the request would
maintain the FY2002 funding level.

CRS-22
! Discretionary funding for Promoting Safe and Stable Families would
receive $130 million less than requested, but the same as in FY2002.
! The PHSSEF would receive $212 million more than requested but
$154 million less than the FY2002 amount.
! The House bill would not accept the $184 million requested for the
Health Facilities Construction Consolidation proposal.
Senate Bill, as Reported. For DHHS programs, the FY2003 Senate bill
differs in several respects from the President’s budget request.
! Health Professions would receive $243 million more than the
FY2003 request, but $125 million less than the FY2002 amount of
$663 million.
! Ryan White AIDS Programs would receive $161 million more than
the request and $162 million more than the FY2002 amount of $1.9
billion.
! The Community Access Program would receive $120 million, the
same as in FY2002; no funds were requested.
! The CDC would receive $520 million more than the request and
$130 million more than the FY2002 level of $4.4 billion.
! LIHEAP would receive $300 million more than the request, and the
same as the FY2002 amount of $1.7 billion; the LIHEAP Emergency
Allocation would be level funded at $300 million, the same as
requested.
! Head Start would receive $202 million more than the request and
$333 million more than the FY2002 amount of $6.5 billion.
! The Senate bill would not provide any funds for the $184 million
Health Facilities Construction Consolidation proposed in the
FY2003 budget.
Bioterrorism Preparedness. The President’s FY2003 budget request
proposes $4.3 billion for DHHS bioterrorism preparedness programs and activities.
Of this amount, $2.3 billion would be provided through the PHSSEF, and $2.0
billion through other accounts, primarily those for NIH. The request includes funds
for strengthening the federal medical and public health response capacity, upgrading
CDC’s facilities, improving state and local public health preparedness, developing
vaccines and maintaining the National Pharmaceutical Stockpile (NPS), preparing
the nation’s hospitals, expanding FDA’s regulatory oversight of drugs and other
biological products, and securing facilities to conduct critical scientific work. For
additional information, see Appendix C: Terrorism Funding in the L-HHS-ED Bill,
page 52, and CRS Report RL31263, Public Health Security and Bioterrorism
Preparedness and Response Act (P.L. 107-188): Provisions and Changes to
Preexisting Law
.
For FY2002, DHHS received $3.0 billion to improve bioterrorism preparedness
at the federal, state, and local levels. The FY2002 L-HHS-ED Appropriations Act,
P.L. 107-116, included $243 million for anti-bioterrorism activities, and the FY2002
Anti-Terrorism Supplemental, P.L. 107-117, provided an additional $2.8 billion as
part of the $20 billion anti-terrorism emergency spending package. P.L. 107-117
allocated the anti-bioterrorism funding under several broad categories, including

CRS-23
$593 million for the NPS, $512 million to purchase smallpox vaccine, $865 million
for state and local health departments, $135 million to upgrade hospital capacity,
$100 million to upgrade CDC’s facilities and capacity, and $155 million for NIH
research and lab construction. In addition, the DHHS Food and Drug Administration
(FDA) — regularly funded under the Agriculture Appropriations Act — received
$151 million for FDA lab security, vaccine approval, and food safety.
Abortion: Annual Funding Restrictions. L-HHS-ED appropriations acts
regularly contain restrictions that limit — for one year at a time — the circumstances
under which federal funds can be used to pay for abortions. The Congress has not
actually amended these restrictions since FY1999. However, given the perennial
volatility of this issue, it may be revisited at any time during consideration of FY2003
L-HHS-ED appropriations. From FY1977 to FY1993, abortions could be funded
only when the life of the mother was endangered. Restrictions on appropriated funds,
popularly referred to as the Hyde Amendments, generally apply to all L-HHS-ED
funds. Medicaid is the largest program affected. The 103rd Congress modified the
provisions to permit federal funding of abortions in cases of rape or incest. The
FY1998 L-HHS-ED Appropriations Act, P.L. 105-78, extended the Hyde provisions
to prohibit the use of federal funds to buy managed care packages that include
abortion coverage, except in the cases of rape, incest, or life endangerment. For
FY1999, the FY1998 Hyde Amendments were continued, along with a clarification
to ensure that the restrictions apply to all trust fund programs (namely, Medicare)
funded by the FY1999 L-HHS-ED Appropriations Act, P.L. 105-277, as well as an
assurance that Medicare + Choice plans cannot require the provision of abortion
services. The FY2000, FY2001, and FY2002 L-HHS-ED Appropriations Acts have
repeated without change the FY1999 funding restrictions. Current provisions can be
found in §508 and §509 of the FY2002 L-HHS-ED Appropriations Act, P.L. 107-
116. For additional information, see CRS Issue Brief IB95095, Abortion:
Legislative Response
.
Embryonic Stem Cell Research: Funding Restrictions. On August 9,
2001, President Bush announced a decision to use federal funds for research on
human embryonic stem cells for the first time, but limited the funding to “existing
stem cell lines.” Embryonic stem cells have the ability to develop into virtually any
cell in the body, and may have the potential to treat medical conditions such as
diabetes and Parkinson’s disease. The use of stem cells, however, frequently raises
difficult ethical and social issues regarding embryo and fetal tissue research. An
FY1996 appropriations continuing resolution, P.L. 104-99 (§128), prohibited NIH
funds from being used for the creation of human embryos for research purposes or
for research in which human embryos are destroyed. From FY1997 through FY2002,
annual appropriations acts extended the prohibition to all L-HHS-ED funds, but the
NIH is the agency primarily affected. The restriction, originally introduced by
Representative Jay Dickey, has not changed significantly since it was first enacted.
However, given the potential volatility of this issue, it may also be revisited at any
time during consideration of the FY2003 L-HHS-ED appropriations. The current
provision can be found in §510 of the FY2002 L-HHS-ED appropriations, P.L. 107-
116. For additional information, see CRS Report RL31015, Stem Cell Research and
CRS Report RL31358, Human Cloning.

CRS-24
CRS Products
CRS Issue Brief IB95095, Abortion: Legislative Response, by Karen J. Lewis, et. al.
CRS Report RL30731, AIDS Funding for Federal Government Programs: FY1981-
FY2003, by Judith A. Johnson.
CRS Report 98-476, AIDS: Ryan White CARE Act, by Judith A. Johnson and
Paulette C. Morgan.
CRS Report RL31225, Bioterrorism: Summary of a CRS/National Health Policy
Forum Seminar on Federal, State, and Local Public Health Preparedness, by
Robin J. Strongin, Contractor, and C. Stephen Redhead, Coordinator.
CRS Report RL30785, The Child Care and Development Block Grant: Background
and Funding, by Alice Butler and Melinda Gish.
CRS Report RL30944, Child Care Issues in the 107th Congress, by Melinda Gish.
CRS Report RL30894, Child Welfare: The Promoting Safe and Stable Families
Program, by Emilie Stoltzfus and Karen Spar.
CRS Report RS20124, Community Services Block Grants: Background and
Funding, by Karen Spar and M. Ann Wolfe.
CRS Report RS21160, The Developmental Disabilities Act: Programs and Funding,
by Sidath V. Panangala.
CRS Report 97-757, Federal Health Centers Program, by Sharon Kearney.
CRS Issue Brief IB10100, Federal Research and Development Funding: Fiscal Year
2003, coordinated by John Dimitri Moteff.
CRS Report RL30952, Head Start: Background and Funding, by Alice Butler and
Melinda Gish.
CRS Report RL31358, Human Cloning, by Judith A. Johnson.
CRS Report 94-211, The Low-Income Home Energy Assistance Program (LIHEAP),
by Emilie Stoltzfus.
CRS Report 97-350, Maternal and Child Health Block Grant, by Sharon Kearney.
CRS Report RL30483, Medical Research Funding: Summary of a CRS Seminar on
Challenges and Opportunities of Proposed Large Increases for the National
Institutes of Health
, by John K. Iglehart, Contractor, and Pamela W. Smith,
Coordinator.
CRS Report RL31058, Medicare Structural Reform: Background and Options, by
Jennifer O’Sullivan, et. al.
CRS Report RL31336, Older Americans Act: Programs and Funding, by Carol
O’Shaughnessy.
CRS Report RL31263, Public Health Security and Bioterrorism Preparedness and
Response Act (P.L. 107-188): Provisions and Changes to Preexisting Law, by
C. Stephen Redhead et al.
CRS Report RS20873, Reducing Teen Pregnancy: Adolescent Family Life and
Abstinence Education Programs, by Carmen Solomon-Fears.
CRS Report 94-953, Social Services Block Grants (Title XX of the Social Security
Act), by Melinda Gish.
CRS Report RL31015, Stem Cell Research, by Judith A. Johnson.
CRS Report 97-1048, The Title X Family Planning Program, by Sharon Kearney.
CRS Electronic Briefing Book, Welfare Reform,
[http://www.congress.gov/brbk/html/ebwlf1.shtml].
CRS Issue Brief IB93034, Welfare Reform: An Issue Overview, by Vee Burke.

CRS-25
World Wide Web Sites
U.S. Department of Health and Human Services
[http://www.hhs.gov]
[http://www.hhs.gov/budget/]
[http://www.hhs.gov/budget/document.htm]
Detailed Appropriations Table
Table 8 shows the appropriations details for offices and major programs of
DHHS.

CRS-26
Table 8. Detailed Department of Health and Human Services
Appropriations
($ in millions)
FY2002
FY2003
FY2003
FY2003
FY2003
Office or major program
enacted a
request
House
Senate
conference
Public Health Service (PHS)
Health Resources and Services
Administration (HRSA),
1,343
1,458
1,458
1,534

Community Health Centers
HRSA National Health Service
145
189
155
189

Corps
HRSA Health Professions
663
295
670
538

HRSA Maternal and Child Health
731
732
727
755

Block Grant
HRSA Abstinence Education
10
73
60
40

HRSA Ryan White AIDS
1,910
1,911
1,930
2,072

Programs
HRSA Family Planning (Title X)
265
265
265
285

HRSA Health Care and Other
312
0
0
0

Facilities
HRSA Community Access
120
0
120
120

Program
HRSA Vaccine Injury
82
86
86
86

Compensation (mandatory)
HRSA, Other
583
449
507
649

HRSA subtotal
6,164
5,458
5,978
6,268

Centers for Disease Control and
Prevention (CDC) b
4,364
3,974
4,289
4,494

National Institutes of Health
(NIH) c
23,374
27,170
26,481
27,193

Substance Abuse and Mental
Health Services Administration
433
433
438
433

(SAMHSA) Mental Health Block
Grant
SAMHSA Substance Abuse
1,725
1,785
1,745
1,795

Block Grant
SAMHSA, Other
976
975
985
1,010

SAMHSA subtotal
3,134
3,193
3,168
3,238

Agency for Healthcare Research
3
0
3
203

and Quality (AHRQ)
AHRQ program level (non-add)
299
250
299
309

PHS subtotal
37,039
39,795
39,919
41,396

Centers for Medicare and Medicaid Services (CMS)
Medicaid Grants to States
153,721
163,951
163,951
163,951

(mandatory)
Payments to Medicare Trust
81,979
81,463
81,463
81,463

Funds (mandatory)
CMS Program Management
2,427
2,508
2,550
2,571

CMS subtotal
238,127
247,922
247,964
247,985


CRS-27
FY2002
FY2003
FY2003
FY2003
FY2003
Office or major program
enacted a
request
House
Senate
conference
Administration for Children and Families (ACF)
Family Support Payments to
4,046
4,037
4,037
4,037

States (mandatory)
Low Income Home Energy
1,700
1,400
1,700
1,700

Assistance Program (LIHEAP)
LIHEAP Emergency Allocation
300
300
0
300

Refugee and Entrant Assistance
460
453
447
453

Child Care and Development
2,100
2,100
2,100
2,100

Block Grant (CCDBG)
Social Services Block Grant
1,700
1,700
1,700
1,700

(Title XX) (mandatory)
Head Start
6,537
6,668
6,668
6,870

Child Welfare Services
292
292
292
292

Developmental Disabilities
140
141
141
150

Community Services Block Grant
650
570
570
653

Violent Crime Reduction
142
142
142
149

Other Children and Family
665
780
654
750

Services Programs
Rescission of mandatory funds
-21
0
0
0

Promoting Safe and Stable
305
305
305
305

Families (PSSF) (mandatory)
PSSF (discretionary)
70
200
70
200

Foster Care and Adoption
6,640
4,855
6,601
6,601

Assistance (mandatory)
ACF subtotal
25,726
25,688
25,426
26,259

Administration on Aging (AOA)
1,347
1,341
1,356
1,384

Office of the Secretary, Public
2,661
2,295
2,507
2,256

Health and Social Service Fund
Retirement Pay and Medical
Benefits, Commissioned Officers
262
251
251
251

(mandatory)
Health Facilities Construction
0
184
0
0

Consolidation Proposal
Office of the Secretary, Other
443
461
432
453

TOTALS, DEPARTMENT OF HEALTH AND HUMAN SERVICES
Total appropriations d
305,606
317,938
317,856
319,984

Current year: FY2002
254,749
261,831
261,749
263,877

Advance year: FY2003
50,856
56,107
56,107
56,107

Source: Amounts are based on the January 9, 2003 unofficial staff table of the House Appropriations
Committee; Senate data are based on S.Rept. 107-216.
a The FY2002 amounts are based on P.L. 107-116, P.L. 107-117, and P.L. 107-206.
b The Veterans Affairs and Housing and Urban Development (VA-HUD) Appropriations Act provides
additional funding for CDC — $78 million in FY2002.
c The VA-HUD Appropriations Act provides additional funding for NIH — $81 million in FY2002.
d Appropriations totals include discretionary and mandatory funds, and may be subject to additional
scorekeeping and other adjustments.

CRS-28
U.S. Department of Education
The FY2003 budget proposal for discretionary appropriations at the U.S.
Department of Education (ED) is $50.3 billion, $0.4 billion (0.8%) more than the
FY2002 appropriations of $49.9 billion, as shown in Table 9. As introduced,
H.R. 246 would provide $50.3 billion; as reported, the Senate bill, S. 2766, would
provide $53.2 billion in discretionary appropriations.
Table 9. Department of Education Discretionary Appropriations
($ in billions) a
FY2002
FY2003
FY2003
FY2003
FY2003
Funding
enacted b
request
House
Senate
conference
Appropriations
$49.9
$50.3
$50.3
$53.2

Source: Amounts are based on the January 9, 2003 unofficial staff table of the House Appropriations
Committee; Senate data are based on S.Rept. 107-216.
a These amounts represent only discretionary programs funded in the L-HHS-ED appropriations bill;
appropriations for mandatory programs are excluded.
b The FY2002 amounts are based on P.L. 107-116, P.L. 107-117, and P.L. 107-206; they include a
$1.0 billion supplemental for Pell Grants.
A single mandatory ED program is included in the L-HHS-ED bill; the
Vocational Rehabilitation State Grants program was funded at $2.5 billion in
FY2002.
Key Issues
President’s Request. The amount of federal support for education has been
a priority of both the Congress and the White House in recent years, and the FY2003
budget request for ED would increase federal funds for both elementary and
secondary education programs and for assistance at the postsecondary level.
Discretionary spending changes of at least $100 million are requested by the
President for the following programs.
! An increase of $1.0 billion is requested for the Title I Part A Grants
to Local Educational Agencies (LEAs) program, which was funded
at $10.4 billion in FY2002.
! An additional $100 million is requested for Reading First programs,
funded at $975 million in FY2002.
! $100 million is requested for a new Charter Schools Facilities
Initiative.
! An additional $1.0 billion would be provided for Special Education
Part B Grants to States program under IDEA, funded at $7.5 billion
in FY2002.
! The FY2003 request includes a proposal for $932 million to support
the creation of a new unified discretionary account for the
administration of federal student aid programs. This amount would

CRS-29
be offset in part by a savings of $795 million through the
reclassification of certain mandatory funds for student aid
administrative activities.
Along with the increases proposed above, the President’s budget would decrease
or terminate funding for several programs.
! An decrease of $0.5 billion is requested for the Pell Grant program
that provides aid to low- and middle-income undergraduate students;
the FY2002 funding level of $11.3 billion includes $1.0 billion
supplemental from P.L. 107-206 that was enacted after the request
was made. The requested maximum award would be kept at the
FY2002 level of $4,000. The President’s FY2003 budget included
a separate request for an FY2002 supplemental appropriation of $1.3
billion for Pell Grants. Under the request, these funds would be
offset by the cancellation of an equal amount of FY2002
appropriations for programs or projects that were not included in the
President’s FY2002 request.
! Rural Education funding would be eliminated; the FY2002 amount
was $163 million.
! The Fund for the Improvement of Education (FIE) would be reduced
by $749 million; $833 million was provided in FY2002.
! The Fund for the Improvement of Postsecondary Education (FIPSE)
would be decreased by $142 million; the program was funded at
$181 million in FY2002.
House Bill, as Introduced. For ED programs, the FY2003 House bill differs
in several respects from the President’s budget request.
! Title I Part A Grants would receive $500 million less than requested,
but $500 million more than in FY2002.
! Teacher Quality would receive $100 million more than the request
and the FY2002 amount.
! Rural Education would be level funded at $163 million; no funds
were requested.
! The FIE would receive $227 million more than requested but $522
million less than the FY2002 amount.
! IDEA Part B Grants to States would receive $500 million less than
requested but $500 million more than the FY2002 amount.
! Pell Grants would receive $337 million more than the request but
$114 million less than the FY2002 amount of $11.3 billion (which
includes the $1.0 billion supplemental enacted through P.L. 107-
206
, August 2, 2002).
! The House bill would reject the President’s request to fund
mandatory student loan administrative activities on a discretionary
basis.
Senate Bill, as Reported. For ED programs, the FY2003 Senate bill differs
in several respects from the President’s budget request.

CRS-30
! Title I Part A Grants would receive $500 million more than the
FY2003 request and $1.5 billion more than the FY2002 amount of
$10.4 billion.
! A Struggling Schools Improvement Grants Initiative would receive
first year funding of $100 million; no funds are requested.
! Teacher Quality would receive $250 million more than the request
and the FY2002 amount; the program was funded at $2.9 billion in
FY2002.
! No funds would be provided for Charter School Facilities, and none
were provided in FY2002; $100 million is requested.
! Rural Education would receive $12 million more than the FY2002
amount of $163 million; no funds are requested.
! FIE programs would receive $792 million more than the request and
$43 million more than the FY2002 amount of $833 million.
! Pell Grants would be funded at $317 million more than the request
but $134 million less than the FY2002 amount of $11.3 billion
(which includes the $1.0 billion supplemental enacted through P.L.
107-206
, August 2, 2002); the Senate bill would increase the
maximum award to $4,100, which is $100 more than the requested
award and the FY2002 maximum award of $4,000.
! The Senate bill would reject the President’s proposal to fund
mandatory student loan administrative activities on a discretionary
basis.
Pell Grants. The funding level for Pell Grants has been a continuing issue.
The program provides assistance to undergraduate students based on financial need.
Aggregate program costs depend largely on the maximum award and the number of
student recipients. The maximum award is currently set when appropriations are
enacted, often well before the start of the program year. The number of student
awards, however, cannot be determined until the final award is claimed; this final
accounting takes place after most decisions have been made on the following year’s
appropriations. Funding shortfalls for Pell Grants are not new; the Senate
Appropriations Committee states that shortfalls have occurred in 6 of the past 12
years (S.Rept. 107-156, p. 75, May 29, 2002).
Appropriations for Pell Grants make funds available for 2 full fiscal years to
provide administrative flexibility regarding potential shortfalls and surpluses. Under
this provision, a shortfall in one fiscal year can be reimbursed with funds obtained
from the following fiscal year; similarly, a surplus can be carried forward and used
in the following year. Currently, some FY2002 funds are needed to make up a
projected FY2001 shortfall, for which a final accounting occurs in FY2003. FY2002
funds used for the FY2001 shortfall will not be available to make awards for the
2002-2003 academic year. As the Congress considers the amount needed for
FY2003 appropriations for Pell Grants, it must consider not only the projected size
and number of awards for the 2003-4004 academic year, but also the sufficiency of
FY2002 appropriations needed for the current 2002-2003 academic year and the
estimated FY2001 shortfall as well.
For FY2003, the President requests $10.9 billion for Pell Grants, with a $4,000
maximum award. As introduced, the House bill would provide $11.2 billion, with

CRS-31
a maximum award of $4,000; as reported, the FY2003 Senate bill would provide
$11.2 billion, with a $4,100 maximum award. The President requested an FY2002
supplemental appropriation of $1.3 billion for Pell Grants (for details, see Budget of
the United States Government Appendix, Fiscal Year 2003
, pages 1195-1197). An
FY2002 supplemental of $1.0 billion was enacted as part of P.L. 107-206, which
brought the FY2002 appropriations total to $11.3 billion. The FY2002 maximum
award was $4,000. An ED Budget Service table of January 10, 2003, shows a
projected FY2003 shortfall of $1.4 billion under the President’s or $1.1 billion under
the House bill. These ED estimates include the use of $0.8 billion from FY2003
appropriations to fund a projected FY2002 shortfall. Cost estimates for FY2003 and
FY2002, and possibly FY2001, are subject to change.
Student Aid Program Administration. The President’s FY2003 budget
proposes the consolidation of the administration of federal student aid programs into
a new unified discretionary account. If enacted, this account would combine the
following: (1) administrative funds for the Direct Loan (DL) program that support
loan origination, servicing, and collection; (2) account maintenance fees for the
Federal Family Education Loan (FFEL) program guaranty agencies; (3) other funds
that partially support administrative activities for the FFEL program; and (4) other
ED personnel and operational funds related to student aid program administration.
These funds are currently provided through a disparate set of mandatory,
discretionary, and subsidy accounts. The proposal would switch the DL program
administrative funds, which are currently mandatory appropriations, to discretionary
appropriations. Similarly, account maintenance fees which partially support FFEL
program guaranty agencies would cease to be mandatory appropriations and would
become discretionary appropriations. Much of the financing of FFEL program
administrative costs, however, would continue to be done through mandatory subsidy
payments to lenders. The Higher Education Act (HEA) provisions that provide the
underlying statutory authority for these funds would have to be changed to
accommodate this proposal. For additional information on the cost, financing, and
design of the FFEL and DL programs, see CRS Report RL30048, Federal Student
Loans: Program Data and Default Statistics
, and CRS Report RL30656, The
Administration of Federal Student Loan Programs: Background and Provisions
.
IDEA Part B Grants to States. The IDEA is the major federal program
providing assistance to states and school districts to help them fulfill their
constitutional obligation to provide a free appropriate public education to children
with disabilities. In 1975, the Congress authorized state payments up to a maximum
amount of 40% of the national average per-pupil expenditure (APPE) times the
number of children with disabilities ages 3 and above that each state serves. The
rationale for this formula was the assumption that the education of children with
disabilities cost twice the national APPE — 100% more than the “average” child —
and the maximum federal share of the extra cost would be 40%. Appropriations have
never been sufficient to reach the 40% level. Some view this deficiency as a promise
made that has not yet been kept. Achieving the 40% funding level for FY2002 for
Part B grants would take an estimated $18.2 billion, whereas the FY2002
appropriation was $7.5 billion, the equivalent of 16.5% of the current APPE times
the number of children served. An additional appropriation of $10.7 billion would
have been necessary to provide the 40% authorized maximum for FY2002. In
addition, funding requirements for maximum grants are likely to grow in the future,

CRS-32
as increases are anticipated for both the APPE and the number of children with
disabilities served. The latter may increase in part as a result of medical advances
that have resulted in more medically fragile children surviving to school age and
receiving a public education. For additional information, see CRS Report 97-433,
Individuals with Disabilities Education Act: Full Funding of State Formula.
Forward Funding and Advance Appropriations. Many of the larger ED
programs have either authorization or appropriations provisions that allow funding
flexibility for school program years that differ from the federal fiscal year. For
example, many of the elementary and secondary education formula grant programs
receive appropriations that become available for obligation to the states on July 1 of
the same year as the appropriations, and remain available through the end of the
following fiscal year. That is, FY2003 appropriations for some programs became
available for obligation to the states on July 1, 2003, and will remain available for a
15-month period until September 30, 2004. This budgetary procedure is popularly
known as “forward” or “multi-year” funding, and is accomplished through funding
provisions in the L-HHS-ED appropriations bill.
Forward funding in the case of elementary and secondary education programs
was designed to allow additional time for school officials to develop budgets in
advance of the beginning of the school year. For Pell Grants for undergraduates,
however, aggregate program costs for individual students applying for postsecondary
educational assistance cannot be known with certainty ahead of time. Appropriations
from one fiscal year primarily support Pell Grants during the following academic
year, that is, the FY2003 appropriations will be used primarily to support the 2003-
2004 academic year. Unlike forward funded programs, however, the funds for Pell
Grants remain available for obligation for 2 full fiscal years. Thus, if cost estimates
turn out to be too low, funds may be borrowed from the following year’s
appropriations, or conversely, if the estimates are too high, the surplus may be
obligated during the following year.
An advance appropriation occurs when the appropriation is provided for a
fiscal year beyond the fiscal year for which the appropriation was enacted. In the
case of FY2002 appropriations, funds normally would have become available
October 1, 2001, under regular funding provisions, but did not become available until
July 1, 2002, under the forward funding provisions discussed above. However, if the
July 1, 2002 forward funding date were to be postponed for obligation by 3 months
— until October 1, 2002 — the appropriation would be classified as an “advance
appropriation” since the funds would become available only in a subsequent fiscal
year, FY2003. For example, the FY2002 appropriation was $10.4 billion for Title I
Part A Grants to LEAs for the Education of the Disadvantaged. This amount
includes not only forward funding of $3.2 billion (available July 1, 2002), but also
an advance appropriation of $7.2 billion (available October 1, 2002). Like forward
funding, advance appropriations are accomplished through provisions in the annual
appropriations bill.
What is the impact of these changes in funding provisions? At the program or
service level, relatively little is changed by the 3-month delay in the availability of
funds, since most expenditures for a standard school year occur after October 1. At
the appropriations level, however, a significant technical difference occurs because

CRS-33
forward funding is counted as part of the current fiscal year, and is therefore fully
included in the current 302(b) allocation for discretionary appropriations. Under
federal budget scorekeeping rules, an advance appropriation is not counted in the
302(b) allocation until the following year. In essence, a 3-month change from
forward funding to an advance appropriation for a given program allows a one-time
shift from the current year to the next year in the scoring of discretionary
appropriations. For additional information on budget enforcement procedures, see
CRS Report 98-720, Manual on the Federal Budget Process.
CRS Products
CRS Report RL31487, Education for the Disadvantaged: Overview of ESEA
Title I-A Amendments Under the No Child Left Behind Act, by Wayne Riddle.
CRS Report RL31315, Education of Limited English Proficient and Recent
Immigrant Students: Provisions of the No Child Left Behind Act of 2001, by
Jeffrey J. Kuenzi.
CRS Report RL31353, Educational Research, Statistics, and Evaluation:
Legislation in the 107th Congress, by Paul M. Irwin.
CRS Report RL30448, Even Start Family Literacy Programs: Background and
Reauthorization Issues, by Gail McCallion and Wayne Riddle.
CRS Report RL31668, Federal Pell Grant Program of the Higher Education Act:
Background and Reauthorization, by James B. Stedman.
CRS Report RL31128, Funding for Public Charter School Facilities: Federal Policy
Under ESEA, by David P. Smole.
CRS Issue Brief IB10097, The Higher Education Act: Reauthorization Status and
Issues, by James B. Stedman.
CRS Report RL30075, Impact Aid: Status and Overview of 2000 Reauthorization
and 2001 Amendments, by Richard N. Apling.
CRS Report 97-433, Individuals with Disabilities Education Act: Full Funding of
State Formula, by Richard N. Apling.
CRS Report RS20366, Individuals with Disabilities Education Act (IDEA):
Overview of Major Provisions, by Richard Apling and Nancy Lee Jones.
CRS Report RL31460, Individuals with Disabilities Education Act (IDEA): State
Grant Formulas, by Richard N. Apling.
CRS Report RS20009, Institutional Aid under Title III and Title V of the Higher
Education Act: Provisions and Status, by James B. Stedman.
CRS Electronic Briefing Book, K-12 Education,
[http://www.congress.gov/brbk/html/ebedd1.shtml]
CRS Report RL31284, K-12 Education: Highlights of the No Child Left Behind Act
of 2001 (P.L. 107-110), by Wayne Riddle.
CRS Report RL30834, K-12 Teacher Quality: Issues and Legislative Action, by
James B. Stedman.
CRS Report RL31241, Reading First and Early Reading First: Background and
Funding, by Gail McCallion.
CRS Report RL31378, Rehabilitation Act: Programs and Funding, by Sidath V.
Panangala.
CRS Report RS20375, Rural Education: Legislative Initiatives, by James B.
Stedman and Richard N. Apling.
CRS Report RS20532, The Safe and Drug-Free Schools and Communities Act:
Reauthorization and Appropriations, by Edith Fairman Cooper.

CRS-34
CRS Issue Brief IB98035, School Choice: Current Legislation, by David P. Smole.
CRS Report RS20171, School Facilities Infrastructure: Background and Legislative
Proposals, by Susan Boren.
CRS Report RL31240, 21st Century Community Learning Centers in P.L. 107-110:
Background and Funding, by Gail McCallion.
World Wide Web Sites
U.S. Department of Education Home Page
[http://www.ed.gov/index.jsp]
[http://www.ed.gov/offices/OUS/budget.html]
[http://www.ed.gov/offices/OUS/Budget03/index.html]
[http://www.ed.gov/offices/OUS/budnews.html]
[http://www.ed.gov/offices/OUS/Budget03/03testimony/index.html]
Detailed Appropriations Table
Table 10 shows the appropriations details for offices and major programs of
ED.

CRS-35
Table 10. Detailed Department of Education Appropriations
($ in millions)
FY2002
FY2003
FY2003
FY2003
FY2003
Office or major program
enacted a request b
House
Senate
conference
Office of Elementary and Secondary Education (OESE)
Total Elementary and Secondary
21,945
22,002
22,157
24,287

Education Act (non-add)
Title I Part A Education for the
10,350
11,350
10,850
11,850

Disadvantaged, Grants to LEAs
Struggling Schools Initiative
0
0
0
100

Even Start
250
200
250
250

Reading First
975
1,075
1,075
1,075

Education for the Disadvantaged,
772
760
762
812

Other
Impact Aid
1,144
1,141
1,185
1,201

School Improvement (SI),
2,850
2,850
2,950
3,100

Teacher Quality
SI Innovative Education Block
385
385
385
385

Grant
SI Educational Technology
785
723
723
792

SI 21st Century Community
1,000
1,000
1,000
1,090

Learning Centers
SI Safe and Drug-Free Schools
654
644
644
654

SI Magnet Schools
110
110
110
110

SI Charter Schools
200
200
200
200

SI Charter Schools Facilities
0
100
50
0

SI State Assessments
387
387
387
397

SI Rural Education
163
0
163
175
SI Fund for the Improvement of
833
84
311
876

Education (FIE)
School Improvement, Other
470
301
425
525

Indian Education
120
122
122
122

English Language Acquisition
and Enhancement (Bilingual and
665
665
665
740

Immigrant Education)
Office of Special Education and Rehabilitative Services (OSERS)
IDEA Special Education, Part B,
7,529
8,529
8,029
8,529

Grants to States
IDEA Special Education, Other
1,144
1,159
1,159
1,167

Vocational Rehabilitation State
2,481
2,533
2,533
2,533

Grants (mandatory)
Rehabilitation Services, Other
464
468
423
430

Special Institutions for Persons
166
160
164
169

With Disabilities
Office of Vocational and Adult Education (OVAE)
Perkins Vocational Education
1,321
1,307
1,329
1,322

Adult Education
591
591
591
591

Incarcerated Youth Offenders
22
0
0
25


CRS-36
FY2002
FY2003
FY2003
FY2003
FY2003
Office or major program
enacted a request b
House
Senate
conference
Office of Student Financial Assistance Programs (OSFAP)
Pell Grants, maximum award (in
4,000
4,000
4,000
4,100

dollars, non-add)
Pell Grants a, b
11,314
10,863
11,200
11,180

Supplemental Educational
725
725
725
725

Opportunity Grants
Federal Work-Study
1,011
1,011
1,011
1,011

Federal Perkins Loans, Capital
100
100
100
100

Contributions
Federal Perkins Loans, Loan
68
68
68
73

Cancellations
Leveraging Educational
67
0
67
73

Assistance Partnership (LEAP)
Loan Forgiveness for Child Care
1
1
1
1

Federal Family Education Loans,
49
0
0
0

Administration
Office of Postsecondary Education (OPE)
Aid for Institutional Development
439
454
454
465

Fund for the Improvement of
181
39
39
76

Postsecondary Education (FIPSE)
Federal TRIO Programs
803
803
810
833

GEAR UP
285
285
285
295

Higher Education, Other
323
302
316
317

Howard University
237
237
240
237

College Housing and Academic
1
1
1
1

Facilities Loans, Administration
Office of Educational Research and Improvement (OERI)
Research and Statistics
386
433
398
393

Multi-year Grants
58
0
0
53

Departmental Management
537
539
539
539

Student Aid Administration Costs
0
932
105
105

Student Aid Reclassification
0
-795
0
0

Proposal
TOTALS, DEPARTMENT OF EDUCATION
Total Appropriations a, b, c
52,417
52,843
52,843
55,698

Current year: FY2003
37,406
37,832
37,830
38,443

Advance year: FY2004
15,011
15,011
15,011
17,255

Source: Amounts are based on the January 9, 2003 unofficial staff table of the House Appropriations
Committee; Senate data are based on S.Rept. 107-216.
a The FY2002 amounts are based on P.L. 107-116, P.L. 107-117, and P.L. 107-206, which includes
an FY2002 supplemental appropriations of $1.0 billion for Pell Grants that is included in the table.
b The FY2003 budget of February 4, 2002, included an FY2002 supplemental request of $1,276
million for Pell Grants, which is not shown in the table.
c Appropriations totals include discretionary and mandatory funds, and may be subject to additional
scorekeeping and other adjustments.

CRS-37
Related Agencies
The FY2003 budget proposal for discretionary appropriations for L-HHS-ED
Related Agencies is $9.3 billion, $0.1 billion (1.1%) more than the FY2002
appropriations of $9.2 billion, as shown in Table 11. As introduced, H.R. 246 would
provide $9.6 billion; as reported, the Senate bill, S. 2766, would provide $9.7 billion
in discretionary appropriations.
Table 11. Related Agencies Discretionary Appropriations
($ in billions) a
FY2002
FY2003
FY2003
FY2003
FY2003
Funding
enacted b
request
House
Senate
conference
Appropriations
$9.2
$9.3
$9.6
$9.7

Source: Amounts are based on the January 9, 2003 unofficial staff table of the House Appropriations
Committee; Senate data are based on S.Rept. 107-216.
a These amounts represent only discretionary programs funded by the L-HHS-ED appropriations bill;
appropriations for mandatory programs are excluded, as are related agency discretionary
appropriations that are funded in other appropriations bills.
b The FY2002 amounts are based on P.L. 107-116, P.L. 107-117, and P.L. 107-206.
Mandatory programs for related agencies included in the FY2002 L-HHS-ED
bill were funded at $30.3 billion, including $29.4 billion for the Supplemental
Security Income (SSI) program, $0.4 billion for the Special Benefits for Disabled
Coal Miners program, and $0.4 billion for payments to the Social Security Trust
Fund.
Key Issues
President’s Request. The President’s FY2003 budget for related agencies
would change discretionary spending by at least $100 million for several programs.
! The Corporation for Public Broadcasting (CPB) would have its 2-
year advance appropriation for FY2005 eliminated; it will receive
$380 million for FY2004 which was enacted by the FY2002
L-HHS-ED bill, and has received $365 million for FY2003 enacted
by the FY2001 bill.
! An additional $351 million is proposed for the SSA Limitation on
Administrative Expenses, which was funded at $4.6 billion in
FY2002.
An increase of $68 million is proposed for the Corporation for National and
Community Service (CNCS) programs, including an additional $50 million to
expand service opportunities for seniors under special volunteer programs; FY2002
funding for CNCS was $328 million.

CRS-38
House Bill, as Introduced. For the related agencies included in the L-HHS-
ED bill, the House bill differs from the President’s budget request by providing an
advance appropriation for CPB of $380 million for FY2005; the CPB would not
receive FY2005 funding under the request. In addition, the CNCS would receive $46
million less than requested under the House bill, including $50 million less than
requested for Special Volunteer Programs.
Senate Bill, as Reported. For related agencies, the FY2003 Senate bill
differs from the President’s budget request by at least $100 million for one program.
! The CPB would receive a 2-year advance appropriation of $395
million for FY2005; funding for FY2005 would not be provided
under the FY2003 request.
The Senate bill would provide $10 million for the Special Volunteer Programs
at the Corporation for National and Community Service (CNCS), an amount that is
$45 million less than requested but $5 million more than the FY2002 amount of
$5 million. In total, CNCS funding would be $15 million less than requested but $53
million more than in FY2002.
CRS Products
CRS Report RS20287, Arts and Humanities: Background on Funding, by Susan
Boren.
CRS Report RL30186, Community Service: A Description of AmeriCorps, Foster
Grandparents, and Other Federally Funded Programs, by Ann Lordeman and
Alice D. Butler.
CRS Report RL31320, Federal Aid to Libraries: The Library Services and
Technology Act, by Gail McCallion.
CRS Report RS21246, National and Community Service: Reauthorization of the
National and Community Service Act of 1990 and the Domestic Volunteer
Service Act of 1973
, by Ann Lordeman.
CRS Report RS20548, Public Broadcasting: Frequently Asked Questions, by
Bernevia McCalip.
CRS Report RS20408, Railroad Retirement and Unemployment Benefits: A Fact
Sheet, by Rachel W. Kelly.
CRS Electronic Briefing Book, Social Security, at
[http://www.congress.gov/brbk/html/ebssc1.shtml].
CRS Report RS20165, Social Security and Medicare “Lock Box,” by David Stuart
Koitz et al.
CRS Report 98-422, Social Security and the Federal Budget: What Does Social
Security’s Being “Off Budget” Mean?, by David Stuart Koitz.
CRS Issue Brief IB98048, Social Security Reform, by Geoffrey Kollmann and Dawn
Nuschler.
CRS Report 94-486, Supplemental Security Income (SSI): A Fact Sheet, by
Jennifer E. Lake.
CRS Report RS20419, VISTA and the Senior Volunteer Service Corps: Description
and Funding Levels, by Ann Lordeman.

CRS-39
World Wide Web Sites
Note: Not all of the L-HHS-ED related agencies have web sites, and not all web
sites include FY2003 budget information.
Armed Forces Retirement Home
[http://www.afrh.com]
Corporation for National and Community Service
[http://www.cns.gov]
[http://www.cns.gov/news/factsheets/fy03budget.html]
Corporation for Public Broadcasting
[http://www.cpb.org]
Federal Mediation and Conciliation Service
[http://www.fmcs.gov]
Institute of Museum and Library Services
[http://www.imls.gov]
[http://www.imls.gov/whatsnew/current/020402.htm]
Medicare Payment Advisory Commission
[http://www.medpac.gov/]
National Commission on Libraries and Information Science
[http://www.nclis.gov/]
[http://www.nclis.gov/news/FY2003.Appropriations.Testimony.pdf]
[http://www.nclis.gov/news/FY2003AppropriationsJustification.pdf]
National Council on Disability
[http://www.ncd.gov/]
National Education Goals Panel
[http://www.negp.gov/]
National Labor Relations Board
[http://www.nlrb.gov]
Railroad Retirement Board
[http://www.rrb.gov]
[http://www.rrb.gov/BFO/Justbudgettoc03.htm]
Social Security Administration
[http://www.ssa.gov]
[http://www.ssa.gov/budget/2003bud.html]
United States Institute of Peace
[http://www.usip.org]

CRS-40
Detailed Appropriations Table
Table 12 shows the appropriations details for offices and major programs of the
L-HHS-ED related agencies.

CRS-41
Table 12. Detailed Related Agencies Appropriations
($ in millions)
FY2002
FY2003
FY2003
FY2003
FY2003
Office or major program
enacted a
request
House
Senate
conference
Armed Services Retirement Home
71
67
67
67

Corporation for National and Community Service (CNCS) b
Volunteers in Service to America
85
94
94
99

(VISTA)
Special Volunteer Programs
5
55
5
10

National Senior Volunteer Corps
206
213
217
238

Program Administration
32
34
34
34

CNCS subtotal
328
396
350
381

Corporation for Public
Broadcasting (CPB), 2-Year
380
0
380
395

Advance
CPB current year (non-add)
350
365
365
365

CPB Digitalization Program
25
25
25
50

Federal Mediation and
40
41
41
41

Conciliation Service
Federal Mine Safety and Health
7
7
7
7

Review Committee
Institute of Museum and Library
Services (IMLS) c
225
210
210
214

–Museum Services (non-add)
27
29
N/S
29

–Library Services (non-add)
198
181
N/S
185

Medicare Payment Advisory
8
8
8
9

Commission
National Commission on
1
0
1
1

Libraries and Information Science
National Council on Disability
3
3
3
3

National Education Goals Panel
< 0.5
0
0
0

National Labor Relations Board
227
233
227
243

National Mediation Board
11
11
11
11

Occupational Safety and Health
9
10
10
10

Review Commission
Railroad Retirement Board
241
228
230
228


CRS-42
FY2002
FY2003
FY2003
FY2003
FY2003
Office or major program
enacted a
request
House
Senate
conference
Social Security Administration (SSA)
SSA Payments to Social Security
434
20
20
20

Trust Fund (mandatory)
SSA Special Benefits for
Disabled Coal Miners
441
397
397
397

(mandatory)
SSA Supplemental Security
29,440
32,162
32,162
32,170

Income (SSI) (mandatory)
SSA SSI, Discretionary
2,927
2,936
2,936
2,936

SSA Limitation on Administrative
4,649
5,000
5,000
5,000

Expenses
SSA Office of Inspector General
75
83
83
83

SSA subtotal
37,966
40,598
40,598
40,606

United States Institute for Peace
15
16
15
17

TOTALS, RELATED AGENCIES
Total appropriations d
39,558
41,854
42,184
42,284

Current year: FY2003
28,280
30,676
30,627
30,712

Advance year: FY2004
10,898
11,177
11,177
11,177

Advance year: FY2005
380
0
380
395

Source: Amounts are based on the January 9, 2003 unofficial staff table of the House Appropriations
Committee; Senate data are based on S.Rept. 107-216.
Note: “N/S” means that the amount was not specified in the bill or table.
a The FY2002 amounts are based on 107-116, P.L. 107-117, and P.L. 107-206.
b L-HHS-ED funds are provided only for CNCS Domestic Volunteer Service Act programs. In
addition, the Veterans Affairs-Housing and Urban Development (VA-HUD) Appropriations Act
provides funds for CNCS AmeriCorps Grants and other programs under the National Community
Service Act — $407 million in FY2002.
c The IMLS amounts include both Library Services and Museum Services; however, $27 million of
the FY2002 amount shown was provided for Museum Services from the FY2002 VA-HUD
Appropriations Act.
d Appropriations totals include discretionary and mandatory funds, and may be subject to additional
scorekeeping and other adjustments.

CRS-43
Related Legislation
Several proposals related to L-HHS-ED appropriations were considered during
the 2nd Session of the 107th Congress, including a series of FY2003 continuing
resolutions, further FY2002 supplemental appropriations, the FY2003 budget
resolutions, and the establishment of a new Department of Homeland Security.
FY2003 Continuing Resolution, P.L. 107-229 (H.J.Res. 111)
Since October 1, 2002, a series of continuing resolutions have extended
appropriations for FY2003 on a temporary basis for most ongoing L-HHS-ED
programs, including the costs of direct loans and loan guarantees. These resolutions
are necessary because the regular FY2003 L-HHS-ED appropriations were not
enacted by the start of FY2003. Funding under the continuing resolution is provided
at a rate of operations not to exceed the “current rate,” under FY2002 conditions and
program authority. New initiatives are prohibited unless otherwise specifically
authorized. For programs with high spend-out rates that normally would occur early
in the fiscal year, special restrictions prohibit spending levels that would impinge on
final funding decisions. For additional information, see CRS Report RL30343,
Continuing Appropriations Acts: Brief Overview of Recent Practices.
! 1st Continuing Resolution, P.L. 107-229 (H.J.Res. 111), provided
temporary appropriations for the period October 1 through
October 4, 2002, as long as regular appropriations were not enacted
sooner. Section 117 of the resolution extends funding through the
entire first quarter of FY2003, through December 31, 2002, for the
Temporary Assistance for Needy Families (TANF) and mandatory
child care programs (these funds were originally provided in the
1996 welfare reform law). The resolution also extends the rules for
transitional Medicaid through December 31, 2002; these rules
provide coverage for up to one year for families moving from
welfare to work. The resolution was passed by the House (roll call
no. 423, 370-1) and the Senate (by unanimous consent) on
September 26, 2002. It was signed into law by the President on
September 30, 2002, as P.L. 107-229.
! 2nd Continuing Resolution, P.L. 107-235 (H.J.Res. 112), extended
the provisions of P.L. 107-229 through October 11, 2002.
! 3rd Continuing Resolution, P.L. 107-240 (H.J.Res. 122), extended
the provisions of P.L. 107-229 through October 18, 2002. In
addition, it requires the current rate to be reduced by the exclusions
listed in OMB instructions to federal agencies on October 4, 2002,
regarding one-time FY2002 appropriations, and requires OMB to
submit monthly reports of the rate of obligations under the
continuing resolutions.
! 4th Continuing Resolution, P.L. 107-244 (H.J.Res. 123), extended
the provisions of P.L. 107-229 through November 22, 2002.
! 5th Continuing Resolution, P.L. 107-294 (H.J.Res. 124), extended
the provisions of P.L. 107-229 through January 11, 2003. In
addition, it authorizes the transfer of up to $640 million for the new

CRS-44
Department of Homeland Security (DHS), including $140 million
for salaries and expenses associated with start-up costs for the new
department.
! 6th Continuing Resolution, P.L. 108-2 (H.J.Res. 1), extends the
provisions of P.L. 107-229 through January 31, 2003.
FY2002 Supplemental Appropriations, P.L. 107-206
(H.R. 4775)

On March 21, 2002, the President submitted to the Congress a request for an
FY2002 supplemental appropriations for emergency funding in support of the war
on terrorism, homeland security, and economic revitalization. The request included
supplemental appropriations of $700 million for L-HHS-ED programs. In addition,
as part of the regular FY2003 budget, the President requested an FY2002
supplemental of $1.3 billion for Pell Grants, with the amount to be offset by
rescissions in FY2002 appropriations from other L-HHS-ED programs.
As passed by the House, H.R. 4775 would have provided an additional $1.3
billion for L-HHS-ED programs, including $1.0 billion for Pell Grants. H.R. 4775,
H.Rept. 107-480
, was passed by the House May 24, 2002 (roll call no. 206, 280-
136). The Senate amendment to the House bill would have provided $1.8 billion for
L-HHS-ED programs, including $1.0 billion for Pell Grants. The Senate proposal
incorporated the provisions of S. 2551, S.Rept. 107-156, as reported by the Senate
Appropriations Committee. H.R. 4775 was passed by the Senate on June 7, 2002
(roll call no. 145, 71-22).
The H.R. 4775 conference agreement provides $1.0 billion for Pell Grants.
An additional $91.5 million would have been provided for other L-HHS-ED
programs, primarily the Public Health and Social Services Emergency Fund
(PHSSEF). However, the availability of the latter funds were made conditional on
the funds being requested by the President; on August 13, 2002, the President
announced that there would be no such request, thereby reducing the amount of
appropriations available to be spent. The agreement also includes a rescission of $75
million from existing FY2002 appropriations for NIH facilities and L-HHS-ED
administration. No additional funds were provided for job training or dislocated
worker programs. The H.R. 4775 conference report, H.Rept. 107-593, was agreed
to by the House on July 23 (roll call no. 328, 397-32), and by the Senate July 25,
2002 (roll call no. 188, 92-7). H.R. 4775 — the 2002 Supplemental Appropriations
Act for Further Recovery From and Response To Terrorist Attacks on the United
States — was signed into law by the President on August 2, 2002, as P.L. 107-206.
For additional information on specific L-HHS-ED programs, see Appendix C:
Terrorism Funding in the L-HHS-ED, Bill
, page 52. For additional information on
H.R. 4775, see CRS Report RL31404, Supplemental Appropriations for FY2002:
Combating Terrorism and Other Issues
.
FY2003 Budget Resolution, H.Con.Res. 353/S.Con.Res. 100
The concurrent resolution on the budget sets forth the congressional budget for
FY2003. The House version of the resolution proposes federal budget levels for

CRS-45
FY2004 through FY2007; the Senate version proposes budget levels for FY2004
through FY2012. The maximum for total discretionary spending is specified within
the context of the budget resolution. As reported, the House version of the resolution
would set an FY2003 limit of $759.1 billion in discretionary spending, compared to
$709.3 billion enacted for FY2002 (H.Rept. 107-376, p. 70). The Senate-reported
version proposes a total FY2003 discretionary limit of $768.1 billion (S.Rept. 107-
141, p. 59). Typically, budget resolutions also specify the budget reconciliation
process for the modification of mandatory spending limits and tax cut legislation, and
set spending targets for functional categories of the budget. They may establish
“reserve fund” mechanisms for activities such as Medicare or student loans, and may
contain “sense of the Congress” declarations concerning programs such as Graduate
Medical Education at Children’s Teaching Hospitals or mental health parity. Report
language usually provides an outline of the funding assumptions made for selected
programs that might be used to reach the spending targets. Actual FY2003
discretionary appropriations for specific departments, agencies, and programs,
however, are determined only through the enactment of appropriations bills.
H.Con.Res. 353 (H.Rept. 107-376), was passed by the House on March 20,
2002 (roll call no. 79, 221-209). S.Con.Res. 100 (S.Rept. 107-141), was reported
by the Senate Budget Committee on March 22, 2002. For additional information, see
CRS Issue Brief IB10102, The Budget for Fiscal Year 2003; also see CRS Report
RL31443, The “Deeming Resolution”: A Budget Enforcement Tool.
Department of Homeland Security, P.L. 107-296 (H.R. 5005)
On June 6, 2002, the President called for the creation of a Department of
Homeland Security (DHS) to direct or coordinate federal activities related to
domestic defense against terrorism. As proposed, the new department would
combine 22 activities from other federal agencies; two of the 22 elements were then
administered by DHHS: (1) emergency preparedness and response concerning
chemical, biological, radiological, and nuclear response assets ($2.1 billion requested
for FY2003); and (2) chemical, biological, radiological, and nuclear countermeasures
concerning civilian bio-defense research programs ($2.0 billion requested for
FY2003). As agreed to by Congress and signed into law by the President, the
establishment of DHS is to take effect January 24, 2003 (60 days after enactment).
Overall, 30 programs and other activities are to be transferred from other agencies,
including four from DHHS. For these four activities, the President requested a total
of $376 million for FY2003.
The President submitted the DHS proposal to Congress on June 18, 2002; it was
introduced as H.R. 5005 on June 24, 2002, by request, and referred to 12 Committees
plus the new House Select Committee on Homeland Security. The bill was amended
and reported, H.Rept. 107-609, Part I, by the House Select Committee on Homeland
Security July 24, 2002, and passed the House July 26, 2002, by a vote of 295 to 132
(roll call no. 367). A Senate bill to create a DHS, S. 2452, S.Rept. 107-175, was
reported by the Senate Committee Governmental Affairs on June 24, 2002, and a
revised version of S. 2452 was ordered reported July 25, 2002. H.R. 5005 was
amended and passed the Senate on November 19, 2002, by a vote of 90 to 9 (roll call
no. 249). The House agreed to the Senate amendment by unanimous consent on

CRS-46
November 22. H.R. 5005 — the Homeland Security Act of 2002 — was signed into
law by the President November 25, 2002, as P.L. 107-296.
Appropriations Action in the 107th Congress, First Session
Most FY2002 appropriations for L-HHS-ED activities were provided through
P.L. 107-116, the Departments of Labor, Health and Human Services, and
Education, and Related Agencies Appropriations Act, 2002
, which was signed
into law by the President on January 10, 2002 (H.R. 3061, conference report H.Rept.
107-342). For additional information, see CRS Report RL30103, Appropriations for
FY2002: Labor, Health and Human Services, and Education
. Other legislation in
the first session related to L-HHS-ED appropriations included the following:
! The FY2002 Anti-Terrorism Supplemental — Division B, the
Emergency Supplemental Act, 2002, of P.L. 107-117 (H.R. 3338),
the Department of Defense and Emergency Supplemental
Appropriations for Recovery from and Response to Terrorist Attacks
on the United States Act, 2002 — transferred and allocated $20
billion previously appropriated by P.L. 107-38 (discussed below).
Of the $20 billion total, $2.9 billion was allocated for L-HHS-ED
activities in FY2002. The House amended and passed H.R. 3338 on
November 28, 2001 (roll call no. 458, 406-20). The Senate amended
and passed H.R. 3338 on December 7, 2001 (by voice vote). The
conference report, H.Rept. 107-350, was passed by the House (roll
call no. 510, 408-6) and by the Senate (roll call no. 380, 94-2) on
December 20, 2001. H.R. 3338 was signed into law by the President
on January 10, 2002. For additional information, see CRS Report
RL31173, Combating Terrorism: Emergency Supplemental
Appropriations — Distribution of Funds to Departments and
Agencies
.
! The FY2001 Anti-Terrorism Supplemental, P.L. 107-38 (H.R.
2888) was the 2001 Emergency Supplemental Appropriations Act
for Recovery from and Response to Terrorist Attacks on the United
States. It provided $40 billion of emergency funds to respond to the
attacks of September 11, 2001, assist its victims, and deal with
“other consequences” of the attack. Not less than 50% of these
funds must be spent on disaster recovery activities and assistance for
New York, Virginia, and Pennsylvania. Of the total $40 billion, $20
billion could not be obligated until enacted in a subsequent
emergency appropriations bill (see P.L. 107-117, above). The
Director of OMB was required to submit quarterly reports to the
Committees on Appropriations describing the use of supplemental
funds beginning no later than January 2, 2002. Of the $20 billion
that does not require additional legislation, $155 million was
allocated for L-HHS-ED programs. On September 14, 2001, (1) the
House passed H.R. 2888 (roll call no. 341, 422-0); (2) the Senate
passed the bill without amendment (by unanimous consent); and (3)
the bill was sent to the White House. The bill was signed into law
by the President on September 18, 2001.

CRS-47
! The Supplemental Appropriations Act, 2001, P.L. 107-20 (H.R.
2216), provided $6.5 billion in new budget authority primarily for
the U.S. Department of Defense. For additional information, see
CRS Report RL30995, Supplemental Appropriations for FY2001:
Defense Readiness and Other Programs
. L-HHS-ED provisions
included: a net decrease of $217.5 million for WIA training
programs at DOL; $300 million additional for the LIHEAP
Emergency Allocation; $161 million additional for Title I Part A
Grants to LEAs for the Education of the Disadvantaged; and smaller
increases for several L-HHS-ED programs, as well as amendments
and technical corrections to other statutes. The House amended and
passed H.R. 2216 (H.Rept. 107-102) on June 20, 2001 (roll call
no.176, 341-87). The Senate amended the House bill by inserting
the text of S. 1077 (S.Rept. 107-33), as amended, on July 10, 2001
(roll call no. 228, 92-1). The conference report on H.R. 2216,
H.Rept. 107-148, was passed by the House (roll call no. 256, 375-
30) and by the Senate (by unanimous consent) on July 20, 2001.
The bill was signed into law by the President on July 24, 2001.
! Eight continuing resolutions (CRS Report RL30343, Continuing
Appropriations Acts: Brief Overview of Present Practices) provided
temporary funding for L-HHS-ED programs in FY2002 prior to the
enactment of P.L. 107-116 on January 10, 2002. The resolutions
were as follows: P.L. 107-44, as amended by P.L. 107-48, P.L. 107-
53, P.L. 107-58, P.L. 107-70, P.L. 107-79, P.L. 107-83, and P.L.
107-97.
! H.Con.Res. 83, the FY2002 budget resolution, sets forth for the
Congress the annual levels for the federal budget through FY2011
(for additional information, see CRS Issue Brief IB10079, The
Budget for Fiscal Year 2002
). H.Con.Res. 83 (H.Rept. 107-26) was
passed by the House March 28, 2001 (roll call no. 70, 222-205).
The resolution was amended and passed by the Senate April 6, 2001
(roll call no. 86, 65-35). The conference report, H.Rept. 107-60, was
agreed to by the House (roll call no. 104, 221-207) on May 9, and by
the Senate (roll call no. 98, 53-47) on May 10, 2001.

CRS-48
Appendix A: Terminology
Note: Definitions are based on CRS Report 98-720, Manual on the Federal Budget
Process
.
Advance appropriation is budget authority that will become available in a fiscal
year beyond the fiscal year for which the appropriations act is enacted; scorekeeping
counts the entire amount in the fiscal year it first becomes available for obligation.
Appropriation is budget authority that permits federal agencies to incur obligations
and to make payments out of the Treasury for specified purposes. Appropriations
represent the amounts that agencies may obligate during the period of time specified
in the law. Annual appropriations are provided in appropriations acts; most
permanent appropriations are provided in substantive law. Major types of
appropriations are regular, supplemental, and continuing.
Budget authority is legal authority to incur financial obligations that normally result
in the outlay of federal government funds. Major types of budget authority are
appropriations, borrowing authority, and contract authority. Budget authority also
includes the subsidy cost of direct and guaranteed loans, but excludes the portion of
loans that is not subsidized.
Budget resolution is a concurrent resolution passed by both Houses of Congress, but
not requiring the signature of the President, setting forth the congressional budget for
at least 5 fiscal years. It includes various budget totals and functional allocations.
Discretionary spending is budget authority provided in annual appropriations acts,
other than appropriated entitlements.
Entitlement authority is the authority to make payments to persons, businesses, or
governments that meet the eligibility criteria established by law; as such, it represents
a legally binding obligation on the part of the federal government. Entitlement
authority may be funded by either annual or permanent appropriations acts.
Forward funding is budget authority that becomes available after the beginning of
one fiscal year and remains available into the next fiscal year; the entire amount is
counted or scored in the fiscal year it first becomes available.
Mandatory (direct) spending includes: (a) budget authority provided in laws other
than appropriations; (b) entitlement authority; and (c) the Food Stamp program.
Rescission is the cancellation of budget authority previously enacted.
Scorekeeping is a set of procedures for tracking and reporting on the status of
congressional budgetary actions.
Supplemental appropriation is budget authority provided in an appropriations act
in addition to regular appropriations already provided.

CRS-49
Appendix B: Scope of L-HHS-ED Appropriations
The FY2002 budget authority for all federal programs was estimated to be
$2,085.0 billion, as shown in Table B.1. Of this amount, the departments and related
agencies funded by the L-HHS-ED bill accounted for $1,058.2 billion (50.8%).
Table B.1. Scope of the L-HHS-ED Bill, FY2002
(Estimated budget authority in billions of dollars)
Estimated
budget
Percent of
Budget category
authority
federal budget
Total federal budget authority
$2,085.0
100.0%
U.S. Department of Labor
59.4
2.8%
U.S. Department of Health and Human Services
468.5
22.5%
U.S. Department of Education
55.3
2.7%
Social Security Administration (On-budget)
44.7
2.1%
Social Security Administration (Off-budget)
428.8
20.6%
Other related agencies
1.5
0.1%
L-HHS-ED agency total
1,058.2
50.8%
L-HHS-ED bill, total current year funds
395.9
19.0%
L-HHS-ED bill, current year mandatory funds
272.5
13.1%
L-HHS-ED bill, current year discretionary funds
123.4
5.9%
Total federal discretionary funds
717.8
34.4%
Source: Budget of the United States Government Historical Tables, Fiscal Year 2003, Tables 5.2 and
5.4; and the L-HHS-ED conference report H.Rept. 107-342, which provides details for the FY2002
L-HHS-ED amounts under P.L. 107-116.
Note: For comparability, this table uses data from the February 2002 OMB budget documents and
the FY2002 conference report of December 19, 2001; the data therefore do not include changes in
scorekeeping, entitlements, or supplemental appropriations that may be made later during FY2002.
The estimated FY2002 appropriations for L-HHS-ED was $395.9 billion in
current year funds — $123.4 billion in discretionary funds and $272.5 billion in
mandatory funds. The L-HHS-ED Appropriations Subcommittees generally have
effective control only over the discretionary funds, which constitute 5.9% of the
aggregate budget authority for all federal departments and agencies, and 11.7% of the
total budget authority for L-HHS-ED departments and agencies.2 What accounts for
the remaining 88.3% ($934.8 billion) of L-HHS-ED funds?
2 The annual congressional budget resolution sets aggregate budget goals; House and Senate
committees initiate and report legislation to achieve these targets. Typically, appropriations
committees develop proposals to meet discretionary targets through appropriations bills.
Likewise, authorizing committees develop proposals to meet mandatory targets; these
proposals are often reported by separate authorizing committees and combined into a single,
omnibus reconciliation bill.

CRS-50
First, some DOL, DHHS, and ED programs receive automatic funding without
congressional intervention in the annual appropriations process; these programs
receive funds from permanent appropriations and trust funds instead. These
programs account for most of the difference between the L-HHS-ED bill total of
$395.9 billion and the agency estimated total of $1,058.2 billion in FY2002. The
major programs in this group include Unemployment Compensation, Medicare,
Railroad Retirement, Temporary Assistance for Needy Families (TANF, the welfare
assistance program), Student Loans, State Children’s Health Insurance, and Social
Security benefits.3
Second, mandatory programs account for the difference between the
L-HHS-ED total of $395.9 billion and the subtotal of $123.4 billion for discretionary
funds in FY2002. Although annual appropriations are made for these programs —
these are sometimes called “appropriated entitlements” — in general the amounts
provided must be sufficient to cover program obligations and entitlements to
beneficiaries. For these programs, as well as the programs funded through trust funds
and permanent authorities, most changes in funding levels are made through
amendments to authorizing legislation rather than through annual appropriations
bills. Federal administrative costs for these programs typically are subject to annual
discretionary appropriations, however. For L-HHS-ED agencies, these programs
include Supplemental Security Income, Black Lung Disability payments, Foster Care
and Adoption, the Social Services Block Grant, and Vocational Rehabilitation, as
well as general (non-earmarked) fund support for Medicare and Medicaid.
Third, two DHHS agencies are fully funded in other appropriations bills, and
four L-HHS-ED programs were partially funded in FY2002 by bills other than
L-HHS-ED. FY2002 appropriations from other, non-L-HHS-ED sources are shown
for each of these agencies and programs.
! The DHHS Food and Drug Administration is funded by the
Agriculture Appropriations ($1.4 billion in FY2002).
! The DHHS Indian Health Service is funded by the Interior
Appropriations ($2.8 billion).
! The Corporation for National and Community Service (CNCS)
— which is funded under related agencies — is funded by L-HHS-
ED for programs authorized under the Domestic Volunteer Service
Act of 1973 ($328 million); it also receives funds from the Veterans
Affairs and Housing and Urban Development (VA-HUD)
Appropriations for AmeriCorps and other programs authorized by
the National Community Service Act ($407 million).
3 The Social Security Administration (SSA) was separated from DHHS and established as
an independent federal agency on March 31, 1995. Within the L-HHS-ED bill, however,
the SSA merely was transferred from DHHS to “related agency” status. The operation of
the Social Security trust funds is considered off-budget. Of the estimated $1,058.2 billion
total for L-HHS-ED departments and agencies in FY2002, the SSA accounted for $473.5
billion, or 44.7% of the total. As shown in Table B.1, the SSA amount represents $44.7
billion for designated on-budget activities and $428.8 billion for off-budget activities.

CRS-51
! The Institute of Museum and Library Services (IMLS) is funded
under L-HHS-ED for the Library Services and Technology Act
programs of the Office of Library Services ($198 million); it
receives additional funds under the FY2002 Interior Appropriations
for the Office of Museum Services ($27 million). However, for
FY2003, all IMLS activities will be funded in the L-HHS-ED bill.
! The Centers for Disease Control and Prevention (CDC) is
primarily funded under L-HHS-ED ($4.3 billion); it also receives
funds under the FY2002 VA-HUD Appropriations for the Agency
for Toxic Substances and Disease Registry (ATSDR) ($78 million).
! The National Institutes of Health (NIH) is primarily funded under
L-HHS-ED ($23.5 billion); it receives additional funds under VA-
HUD Appropriations for certain environmental health sciences
activities ($81 million).

CRS-52
Appendix C: Terrorism Funding in
L-HHS-ED Appropriations
Several L-HHS-ED programs include activities that relate to preparing for and
responding to terrorism. Many of these programs were in place prior to the terrorist
attacks of September 11, 2001, but significant funding increases have been enacted
since. An annual L-HHS-ED summary is given first, followed by descriptive details.
! On November 25, 2002, the Homeland Security Act of 2002 was
signed into law by the President as P.L. 107-296, establishing the
new Department of Homeland Security (DHS). Four programs from
DHHS are to be transferred to the new department, for which $376
million is requested for FY2003.
! On June 18, 2002, the President proposed the transfer of two current
clusters of DHHS activities to his proposed Department of
Homeland Security (DHS): (1) civilian biodefense research
programs, with an FY2003 request of $2.0 billion; and (2) chemical,
biological, radiological, and nuclear response assets, with an
FY2003 request of $2.1 billion.
! On March 20, 2002, the President proposed an FY2002 emergency
supplemental that would include an additional $750 million for
dislocated worker programs at the U.S. Department of Labor (DOL),
and an FY2002 rescission of $50 million from DHHS programs.
! On February 4, 2002, the President proposed for FY2003 $4.3
billion, mostly for U.S. Department of Health and Human Services
(DHHS) programs, that prevent, or respond to, bioterrorism,
including public health and hospital preparedness.
! For FY2002, regular appropriations provided $0.2 billion for anti-
bioterrorism activities and supplemental appropriations provided an
additional $2.8 billion for DHHS, primarily for bioterrorism and
response programs, and another $220 million for DOL, primarily for
emergency worker compensation programs. A rescission of $75
million was also enacted that reduced previously enacted funding for
National Institutes of Health (NIH) facilities and L-HHS-ED
administrative expenses.
! For FY2001, $291 million was enacted before the terrorist attacks of
September 11, 2001, primarily for DHHS bioterrorism programs;
after the attacks, an additional $126 million was enacted for DHHS
programs for health-related needs in disaster areas and $29 million
for DOL programs for temporary jobs to clean up afer the disaster.
Department of Homeland Security Programs
The Homeland Security Act of 2002, P.L. 107-296, establishes DHS to take
effect January 24, 2003 (60 days after enactment). Overall, 30 programs and other
activities are to be transferred to the new department from other agencies, including
four from DHHS, as follows:

CRS-53
! Office of Emergency Preparedness ($14 million appropriated for
FY2002; $15 million requested for FY2003);
! National Disaster Medical System ($10 million appropriated for
FY2002; $11 million requested for FY2003);
! Metropolitan Medical Response System ($25 million appropriated
for FY2002; $50 million requested for FY2003); and
! Strategic National [Pharmaceutical] Stockpile ($650 million
appropriated for FY2002, including a $593 million supplemental;
$300 million requested for FY2003).
Terrorism Funding, FY2003 Request
The President’s FY2003 budget request proposes an increase in terrorism
funding for some L-HHS-ED programs, primarily bioterrorism activities at DHHS.
Under the request, $4.3 billion of funding is requested for bioterrorism programs, as
follows:
! $1,637 million for Centers for Disease Control and Prevention
(CDC) activities for state and local public health preparedness and
the National Pharmaceutical Stockpile (NPS), among other
activities, compared to FY2002 funding of $2,298 million – the
decrease is due primarily to a one-time buildup in FY2002 of
vaccines and other pharmaceuticals to combat bioterrorism threats;
! $618 million for Health Resources and Services Administration
(HRSA) activities for hospital preparedness and infrastructure,
compared to FY2002 funding of $135 million;
! $1,748 million for research and facilities security activities at the
National Institutes of Health (NIH), compared to FY2002 funding of
$274 million; and
! $150 million for the Office of the Secretary for the Office of
Emergency Preparedness and the Office of Public Health
Preparedness, compared to FY2002 funding of $117 million.
In addition, the DHHS Food and Drug Administration (FDA) would be funded at
$159 million for food safety and vaccine approval, compared to $158 million in
FY2002. The FDA is regularly funded in the Agriculture Appropriations Act. For
more information on bioterrorism programs, see CRS Report RL31263, Public
Health Security and Bioterrorism Preparedness and Response Act (P.L. 107-188):
Provisions and Changes to Preexisting Law
.
On September 3, 2002, the President submitted a supplemental FY2003
request for $1.0 billion that would fund some of the activities left unfunded by the
rejection of the $5.1 billion contingent FY2002 emergency appropriations that were
enacted through P.L. 107-206 (discussed below). For L-HHS-ED activities, the new
request includes an additional $100 million for the CDC for the International Mother
and Child HIV Prevention Initiative, along with an equal amount for the same
initiative funded through the Agency for International Development.

CRS-54
Terrorism Funding, FY2002
Most FY2002 L-HHS-ED terrorism funding originates with the $40 billion
supplemental appropriations enacted by P.L. 107-38, the 2001 Emergency
Supplemental Appropriations Act for Recovery from and Response to Terrorist
Attacks on the United States. Of this $40 billion, the second $20 billion could not
be obligated until its allocation was specified in another appropriations act. The
required specification was enacted through Division B of P.L. 107-117, the
Department of Defense and Emergency Supplemental Appropriations for Recovery
from and Response to Terrorist Attacks on the United States Act, 2002. Of the $20
billion requiring another appropriations act, P.L. 107-117 (H.R. 3338, H.Rept. 107-
350
) designated $2.9 billion for L-HHS-ED activities. An estimated additional $315
million was provided through the regular FY2002 L-HHS-ED Appropriations which
were enacted by P.L. 107-116.
Note: Although enacted as FY2001 appropriations under P.L. 107-38, the
second $20 billion could not be obligated under P.L. 107-117 before FY2002, at the
earliest, and most agencies appear to have counted these funds as if they were
FY2002 appropriations.
Activities at DOL include $220.1 million from the P.L. 107-117 Emergency
Supplemental, as follows:
! $32.5 million for Training and Employment Services for an
Emergency Employment Clearinghouse for New York City;
! $4.1 million for emergency expenses under the State Unemployment
Insurance and Employment Service Operations (SUI/ESO) program;
! $175.0 million for emergency expenses for Workers Compensation
Programs;
! $1.6 million for emergency expenses under the Pension and Welfare
Benefits Administration (PWBA);
! $1.0 million for emergency expenses at Occupational Safety and
Health Administration (OSHA); and
! $5.9 million for emergency expenses under DOL Departmental
Management.
Activities at DHHS include $2,666.8 million from the P.L. 107-117 Emergency
Supplemental, as follows:
! $12.0 million for the Centers for Disease Control and Prevention
(CDC) for emergency services personnel and rescue and recovery
personnel;
! $140.0 million for the Public Health and Social Services Emergency
Fund (PHSSEF) to support grants for health care related expenses
and lost revenues directly attributable to the public health emergency
resulting from September 11, 2001;
! $2,504.3 million for the PHSSEF to support activities related to
countering potential biological, disease, and chemical threats to

CRS-55
civilian populations (these funds were subsequently allocated to
specific DHHS accounts); and
! $10.5 million for emergency expenses at the National Institute of
Environmental Health Sciences at NIH.
Other L-HHS-ED activities funded by P.L. 107-117 include $10.0 million for
Project SERV (School Emergency Response to Violence) program at the U.S.
Department of Education (ED); $0.2 million for emergency expenses at the National
Labor Relations Board (NLRB); and $7.5 million for emergency expenses at the
Social Security Administration (SSA).
Further FY2002 Emergency Funding. On March 20, 2002, the President
proposed an FY2002 supplemental appropriation of $27.1 billion for terrorism,
defense, homeland security, and economic revitalization. Of this amount, $750
million would have been for dislocated worker programs, mostly under Training and
Employment Services programs at DOL. The proposal would have rescinded $20
million for the Community Access Program to provide health care for the uninsured
at the DHHS Health Resources and Services Administration (HRSA) and $30 million
for NIH construction projects that are not yet underway. In the President’s FY2003
budget, an FY2002 supplemental of $1.3 billion was requested for Pell Grants, with
the additional funds to be offset by rescissions in FY2002 appropriations for other
L-HHS-ED programs. For the President’s request for Pell Grants, see Budget of the
United States Government Appendix, Fiscal Year 2003
, pp. 1195-1197; for program
information, see the Pell Grants section of this report (page 30).
On May 24, 2002, the House passed H.R. 4775, the 2002 Supplemental
Appropriations Act for Further Recovery From and Response To Terrorist Attacks
on the United States. With a $28.8 billion total, the bill would provide $300 million
for job training programs under the Workforce Investment Act of 1998 (WIA) at
DOL.4 At DHHS, $1 million would be provided for the CDC for Disease Control,
Research, and Training, and $0.5 million for the Domestic Violence Hotline; a
rescission of $30 million would be made for NIH Buildings and Facilities. At ED,
an additional $1.0 billion would be provided for Pell Grants.
On June 7, 2002, the Senate amended and passed its version of H.R. 4775, the
2002 Supplemental Appropriations Act for Further Recovery From and Response To
Terrorist Attacks on the United States. With a $32.6 billion total, the Senate version
of the bill would provide $400 million for WIA job training programs at DOL. At
DHHS, $315 million would be provided for the CDC for Disease Control, Research,
and Training. A rescission of $30 million would be made for NIH Buildings and
Facilities; however, an additional $72 million would be provided for emergency
expenses for counter terrorism facilities at NIH. An additional $90 million would be
provided for the PHSSEF. At ED, an additional $1.0 billion would be provided for
Pell Grants. The Senate version of the bill would reduce by $45 million FY2002
L-HHS-ED administrative expenses.
4 H.R. 4775 amounts for the House bill, the Senate amendment, and the conference
agreement are based on the July 24, 2002 unofficial staff table of the House Appropriations
Committee.

CRS-56
The H.R. 4775 conference report, H.Rept. 107-593, the 2002 Supplemental
Appropriations Act for Further Recovery From and Response To Terrorist Attacks
on the United States, was passed by the House on July 23, and the Senate on July 24,
2002. Of the $30.0 billion total ($28.9 billion discretionary), the bill would provide
$90.0 million for the PHSSEF, $1.0 million for the CDC, $0.5 million for the
Domestic Violence Hotline, and $1.0 billion for Pell Grants. In addition, the bill
would rescind $30 million for NIH Buildings and Facilities and $45 million for
L-HHS-ED administrative expenses. The conference agreement included no funds
for WIA job training or dislocated worker programs. H.R. 4775 was signed into law
by the President on August 2, 2002, as P.L. 107-206.
Of the funding provided by P.L. 107-206, $5.1 billion was designated as
contingent emergency appropriations, available only if subsequently requested by the
President. On August 13, 2002, the President announced the decision that these
funds would not be requested, thereby reducing the total available from P.L. 107-206
to $24.9 billion. This reduction includes funds for L-HHS-ED programs — the
supplemental amounts of $90.0 million for the PHSSEF, $1.0 million for the CDC,
and $0.5 million for the Domestic Violence Hotline will not be available as a
consequence of the President’s decision. For additional information on P.L. 107-206,
see CRS Report RL31406, Supplemental Appropriations for FY2002: Combating
Terrorism and Other Issues
.
Terrorism Funding, FY2001
Enacted prior to the September 11, 2001 terrorist attacks on the United States,
regular FY2001 L-HHS-ED Appropriations for programs to prepare for or respond
to terrorism totaled $291 million for three programs at the U.S. Department of Health
and Human Services (DHHS). The OMB summarized this information in its August
2001 report, Annual Report to Congress on Combating Terrorism, available at:
[http://www.whitehouse.gov/omb/legislative/nsd_annual_report2001.pdf].
! The Centers for Disease Control and Prevention (CDC) received
$181 million for the Rapid Response and Advanced Technology
Laboratory, which was established specifically for bioterrorism-
related activities; the Laboratory Response Network, which provides
containment and diagnostic capabilities for public health
laboratories; and the National Pharmaceutical Stockpile, which was
developed to ensure the availability of critical medical supplies and
equipment;
! The National Institutes of Health (NIH) received $50 million for
conducting basic and applied research on likely bioterrorism
chemical and biological agents; and
! The DHHS Office of the Secretary, Office of Emergency
Preparedness (OEP), received $60 million for managing the
Metropolitan Medical Response System, which provides funds and
technical assistance to local areas for coordinating emergency
services, and the National Disaster Medical System, which, in
partnership with other federal agencies, provides emergency medical
care for mass casualties and other disasters.

CRS-57
Supplemental FY2001 Funding. On September 18, 2001, the President
signed into law P.L. 107-38, the 2001 Emergency Supplemental Appropriations Act
for Recovery from and Response to Terrorist Attacks on the United States. The Act
provided $40 billion of FY2001 funds to respond to the terrorist attacks of September
11, 2001. Of the total $40 billion, $10 billion was available for obligation by the
President immediately, $10 billion was available for obligation following a 15-day
notification of the Congress, and $20 billion would be available for obligation only
after the allocations were enacted in another emergency appropriations act. As noted
previously, the second $20 billion is sometimes counted by agencies as FY2002
appropriations.
Of the $20 billion provided by P.L. 107-38 that did not need additional
legislation, $155 million was distributed for L-HHS-ED programs, as follows:
! $126 million for DHHS activities for health-related needs in areas
affected by the disaster; and
! $29 million for U.S. Department of Labor (DOL) activities, mostly
for temporary jobs to assist the cleanup and restoration efforts in
New York City.
For more information on terrorism, see CRS Report RL31173, Terrorism
Funding: Emergency Supplemental Appropriations — Distribution of Funds to
Departments and Agencies
; and the CRS Electronic Briefing Book on Terrorism at
[http://www.congress.gov/brbk/html/ebter1.shtml].